The Difference of Rate-Sensitive Liabilities and Rate-Sensitive Assets Is Known

question 16

Multiple Choice

The difference of rate-sensitive liabilities and rate-sensitive assets is known as the

• A)duration.
• B)interest-sensitivity index.
• C)rate-risk index.
• D)gap.

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Definitions:

Market

A system where buyers and sellers interact to trade goods, services, and resources.

Productivity

The efficiency with which inputs, like labor and capital, are converted into outputs, typically measured as a ratio of output to input.

Percent

A part per hundred, a unit of measure used to express the fraction of a quantity relative to one hundred parts of the total.

Industrial Country

A nation with a significant level of development and industrial capacity, often characterized by a high standard of living and a diverse economy.