Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years, the duration of liabilities .5 years. Assets Reserves T-bills Mortgages Commercial Loans Liabilities 5 m Money Market Deposits 5 m 50 m 1-year CDs 85 m 40 m Capital 10 m 5 m What is the amount of Income Gap? -40 m 40 m - 90m -30

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
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Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years,
the duration of liabilities .5 years.
Assets
Reserves
T-bills
Mortgages
Commercial Loans
Liabilities
5 m
Money Market Deposits 5 m
50 m
1-year CDs
85 m
40 m
Capital
10 m
5 m
What is the amount of Income Gap?
-40 m
40 m
- 90m
-30
Transcribed Image Text:Using the balance sheet below for a financial institution, and the duration of asset is 3.5 years, the duration of liabilities .5 years. Assets Reserves T-bills Mortgages Commercial Loans Liabilities 5 m Money Market Deposits 5 m 50 m 1-year CDs 85 m 40 m Capital 10 m 5 m What is the amount of Income Gap? -40 m 40 m - 90m -30
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