Consider the Following Repricing Buckets and Gaps What Is the Annualised Change in the Bank's Future Net

Consider the following repricing buckets and gaps: $$\begin{array} { | l | r | r | r | } \hline \text { Repricing bucket } &{ \text { Assets } } & { \text { Liabilities } } & { \text { Gaps } } \\\hline \text { 1 day } & \$ 50000 & \$ 120000 & - \$ 70000 \\\hline \text { 1 day to 3 months } & \$ 100000 & \$ 70000 & \$ 30000 \\\hline \text { 3 to 6 months } & \$ 100000 & \$ 100000 & \$ 0 \\\hline \text { 6 to 12 months } & \$ 250000 & \$ 80000 & \$ 170000 \\\hline 1 \text { to 5 years } & \$ 75000 & \$ 130000 & - \$ 55000 \\\hline \text { Over 5 years } & \$ 25000 & \$ 100000 & - \$ 75000 \\\hline\end{array}$$ What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 100 basis points?

A) $17 000
B) -$17 000
C) $13 000
D) -$13 000

Correct Answer:

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