If a Bank Specializes in Mortgage Lending It Will Tend

question 69

True/False

If a bank specializes in mortgage lending it will tend to have a negative $ GAP and a positive duration GAP.

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Definitions:

Selling and Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to production.

Net Income

The total profit of a company after subtracting all expenses from revenue, including taxes and costs.

Units Sold

The total number of product units that have been sold during a particular time period.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed expenses and provide profit.