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:

• A)6 years.
• B)8 years.
• C)10 years.
• D)14 years.

Understand the relationship between energy consumption and GDP growth.

Identify strategies to address climate change and sustainability in business operations.

Recognize the principles of sustainability in various business contexts.

Analyze the impact of energy choices on sustainable development.

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Definitions:

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or profit for the business.

Markup Percentage

A percentage increase on the buying price of items intended to account for operational expenses and ensure earnings.

Selling and Administrative Costs

Expenses related to the selling of products or services and the general administrative activities of a business.

Markup Percentage

The proportion added onto the purchase price of goods to accommodate for overhead costs and gain profit.