One Way That Banks Can Reduce the Duration of Their

question 33

Multiple Choice

One way that banks can reduce the duration of their asset portfolios is through the use of

• A) fixed-rate mortgages.
• B) adjustable-rate mortgages.
• C) certificates of deposit.
• D) short-term borrowing.

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Definitions:

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain.

Blind Spot

A region on the retina where the optic nerve exits the eye, lacking photoreceptor cells, and therefore no image detection occurs, leading to a gap in the visual field.

Lens

In the context of the human body, the lens is a transparent, biconvex structure in the eye that focuses light onto the retina to facilitate clear vision.

Lamellated Corpuscle

A nerve ending found in the skin and other tissues, sensitive to pressure and vibration.