A Bank Has an Average Asset Duration of 1

question 57

Multiple Choice

A bank has an average asset duration of 1.15 years and an average liability duration of 2.70 years. This bank has $250 million in total assets and $225 million in total liabilities. This bank has:

• A) A negative duration gap of 1.55 years.
• B) A positive duration gap of 1.28 years.
• C) A negative duration gap of 3.85 years.
• D) A negative duration gap of 1.28 years.

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Definitions:

QBO

QuickBooks Online, a cloud-based financial management software used for business accounting.

Presentation

A prepared speech or display of information on a particular topic, usually involving visual aids.

Quality

The standard or degree of excellence of a product, service, or process, often measured against other similar items.

Impersonal Journalism

A style of journalism that prioritizes objectivity and factuality, minimizing the influence of personal bias.