Use the Following Table to Answer the Question

question 67

Multiple Choice

Use the following table to answer the question :

-Assuming that the average duration of its assets is five years,while the average duration of its liabilities is three years,then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by ________ of the total original asset value.

• A)5 percent
• B)10 percent
• C)15 percent
• D)25 percent

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Definitions:

Near-Death Experience

A profound psychological event that may occur to a person close to death or, if not dying, in a situation of physical or emotional crisis.

Psychological Outcomes

These are the effects or results of experiences or treatments on a person's mental processes and behavior, including their emotions, attitudes, and overall psychological well-being.

Basic Assumption of Order

The underlying belief that there is an inherent organization or system in place within a society or environment.

Berger

Likely referring to a person or concept that needs more contextual information for a specific definition. Commonly, Peter L. Berger is known for his work in sociology, particularly social constructionism and the sociology of religion.