Setting the Duration of the Assets Higher Than the Duration

question 97

True/False

Setting the duration of the assets higher than the duration of the liabilities will exactly immunize the net worth of an FI from interest rate shocks.

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Definitions:

Mercantilism

is an economic theory and practice where government regulation of a nation's economy is used to augment state power at the expense of rival national powers, primarily through a favorable balance of trade.

Resistance Movement

a group or organization that actively opposes and fights against an occupying force or government, typically during a war or period of military occupation.

Spinning Bees

Social gatherings in colonial America where women met to spin yarn, weave, and engage in communal work while socializing.