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:

Microdrip

A type of drip set for an intravenous infusion that delivers a small amount of fluid, typically 60 drops per ml, used for precise fluid delivery.

Y Tubing

A type of medical tubing that splits a single input stream into two outputs, resembling the letter "Y."

Gravity Infusion

A method of delivering fluids into the body using the force of gravity, typically through intravenous therapy.

Blood Administration

The process of transfusing blood or blood products into an individual's circulatory system.