Maturity Gap Is

question 52

Multiple Choice

Maturity gap is:

• A)a measure of the difference between the duration of a bank's assets and the duration of its liabilities.
• B)a measure of the difference between the value of assets that will either mature or be repriced within a given time interval and the value of liabilities that will either mature or be repriced during the same time period.
• C)a measure of the difference between the duration of a bank's liabilities and the duration of its assets.
• D)a measure of the difference between the value of liabilities that will either mature or be repriced within a given time interval and the value of assets that will either mature or be repriced during the same time period.

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Definitions:

Direct Materials Variances

The difference between the actual costs of direct materials used in production and the standard or expected costs.

Fixed Overhead

Expenses that remain constant regardless of how much is produced or sold, including items like lease payments, wages, and insurance premiums.

Direct Labor

The wages or salaries paid to employees who are directly involved in manufacturing a product or providing a service.

Raw Material

Basic materials used in the production process to manufacture finished goods, essential components of production cost.