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Use the Following Information to Answer the Question(s)below

question 48

Multiple Choice

Use the following information to answer the question(s) below.
You are a risk manager for Security First Trust Savings and Loan (SFTSL) .SFTSL's balance sheet is as follows (in millions of dollars) : The duration of the auto loans is three years and the duration of the mortgages is eight years.Both cash reserves and checking and savings have zero duration.The CDs have a duration of two years and the long-term financing has a ten-year duration.
-Because of a new program called Kash for Klunkers,SFTSL experiences a rash of auto loan prepayments,reducing the size of the auto loan portfolio from $200 million to $100 million and increasing the cash reserves to $200 million.After these prepayments,the duration of SFTSL's equity is closest to:

Definitions:

Goal-Related Tasks

Tasks that are directly tied to the accomplishment of specific objectives within an organization or project.

Goal-Directed Manner

Acting with intention and focus towards achieving a specific outcome or set of objectives.

Motivate Workers

The process of inspiring and encouraging employees to achieve greater levels of performance and engagement in their tasks.

Procedural Justice

The fairness of the processes that are used to make decisions, often judged by the transparency, consistency, and impartiality of the process.