Question 18 What is the Duration Gap for the bank balance sheet shown below? Assets Amount Duration Liabilities and Equity Amount Duration Cash 80 0.00 Non-interest deposits 100 0.00 Securities 270 4.25 NOW...

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Finance

Question 18
What is the Duration Gap for the bank balance sheet shownbelow?
Assets
Amount
Duration
Liabilities and Equity
Amount
Duration
Cash
80
0.00
Non-interest deposits
100
0.00
Securities
270
4.25
NOW checking
170
1.00
Loans, net
600
4.75
MMDA
330
0.25
Fed funds sold
0
CDs
160
1.75
Non-earning assets
50
Fed Funds purchased
150
0.00
$1,000
Equity
90
$1,000
A.
3.9975 years
B.
3.465 years
C.
6.00 years
D.
0.5852 years
E.
3.41 years

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Question 18What is the Duration Gap for the bank balance sheet shownbelow?AssetsAmountDurationLiabilities and EquityAmountDurationCash800.00Non-interest deposits1000.00Securities2704.25NOW checking1701.00Loans, net6004.75MMDA3300.25Fed funds sold0CDs1601.75Non-earning assets50Fed Funds purchased1500.00$1,000Equity90$1,000A.3.9975 yearsB.3.465 yearsC.6.00 yearsD.0.5852 yearsE.3.41 years

Assets	Amount	Duration	Liabilities and Equity	Amount	Duration
Cash	80	0.00	Non-interest deposits	100	0.00
Securities	270	4.25	NOW checking	170	1.00
Loans, net	600	4.75	MMDA	330	0.25
Fed funds sold	0		CDs	160	1.75
Non-earning assets	50		Fed Funds purchased	150	0.00
	$1,000		Equity	90
				$1,000

	A.	3.9975 years
	B.	3.465 years
	C.	6.00 years
	D.	0.5852 years
	E.	3.41 years