A DI Has Two Assets: 50 Percent in One-Month Treasury

question 44

Multiple Choice

A DI has two assets: 50 percent in one-month Treasury bills and 50 percent in real estate loans.If the DI must liquidate its T-bills today, it receives $98 per $100 of face value; if it can wait to liquidate them on maturity (in one month's time) , it will receive $100 per $100 of face value.If the DI has to liquidate its real estate loans today, it receives $90 per $100 of face value liquidation at the end of one month will produce $92 per $100 of face value.The one-month liquidity index value for this DI's asset portfolio is

• A).973.
• B).940.
• C).979.
• D)1.06.
• E)1.10.

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Definitions:

Conventional Morality

Refers to a level in moral development where individuals adhere to rules and norms, particularly those valued in their society or by authority figures, to maintain social order and gain approval.

Kohlberg's Theory

A theory of moral development presented by Lawrence Kohlberg, which proposes that individuals progress through different stages of moral reasoning.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Law And Order

A concept or legal and political framework focused on enforcing laws and maintaining social control and public safety.