Assume a Bank Has $200 Million of Assets with a Duration

question 122

Multiple Choice

Assume a bank has $200 million of assets with a duration of 2.5,and $190 million of liabilities with a duration of 1.05. If interest rates increase from 5 percent to 6 percent,the net worth of the bank falls by

• A)$1 million.
• B)$2.4 million.
• C)$3.6 million.
• D)$4.8 million.

Comprehend the political strategies and dynamics of U.S. presidential elections between the 1980s and 2000.

Analyze the effects of judiciary decisions on U.S. society and politics, especially concerning abortion rights.

Recognize the role of technology, including the internet and GPS, in shaping contemporary society and globalization.

Identify the economic policies and their implications on U.S. and global economics during this period.

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Definitions:

New Jersey Plan

A proposal at the Constitutional Convention in 1787, advocating for a single legislative house with equal representation for each state, regardless of size or population.

Single-House Legislature

A legislative body with only one chamber or house, as opposed to a bicameral legislature, which has two chambers.

Constitution

The supreme law of the United States, establishing the framework of national government and fundamental rights.

Anti-Federalists

Individuals and political groups that opposed the creation of a stronger U.S. federal government and the ratification of the 1787 Constitution, advocating for states' powers.