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XYZ Bank has DA = 2.4 years and DL = 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Currently, interest rates are at 6%.
-To set the bank's duration gap to zero the bank could

Distinguish Erikson’s theory from other developmental theories.
Grasp Kohlberg’s stages of moral development and their applications.
Understand the physical and psychological development during puberty.
Recognize the sociocultural attitudes towards aging and elderly health conditions.

Definitions:

Tylenol Cold & Flu

is a medication brand designed to relieve symptoms associated with the cold and flu, such as fever, aches, and congestion.

Stimulus Discrimination

The process by which individuals learn to differentiate among similar stimuli and respond appropriately to each.

Routine Problem Solving

A consumer decision-making process used for purchasing frequently bought, low-cost items that requires minimal search and decision effort.

Stimulus Discrimination

The ability of an individual to differentiate between similar stimuli and respond to them differently.

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