What Conclusions Can You Draw from the Duration Gap in Your

question 90

Multiple Choice

What conclusions can you draw from the duration gap in your answer to the previous question?

• A)The market value of the dealer's equity decreases slightly if interest rates fall.
• B)The market value of the dealer's equity becomes negative if interest rates rise.
• C)The market value of the dealer's equity decreases slightly if interest rates rise.
• D)The market value of the dealer's equity becomes negative if interest rates fall.
• E)The dealer has no interest rate risk exposure. [Refer to: 9-80]

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Definitions:

Fundamental Niche

The entire set of conditions under which an organism can survive and reproduce without the presence of competition or predators.

Competition For Food

occurs when two or more organisms or species vie for the same food resources in their habitat, which can influence the population and distribution of the species involved.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.