If a Bank Has a ____ Duration Gap, Its Average

question 23

Multiple Choice

If a bank has a ____ duration gap, its average asset duration is probably ____ than its liability duration.

• A)zero; smaller
• B)positive; larger
• C)negative; larger
• D)None of these are correct.

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Definitions:

Type 1 Diabetes Mellitus

A chronic condition where the pancreas produces little or no insulin, leading to high levels of glucose in the blood.

Saturated Fat

A type of dietary fat found in animal products and some plant oils, known to raise cholesterol levels and increase heart disease risk.

Nonnutritive Sweeteners

Artificial or natural sweeteners that provide little to no nutritional value but add sweetness to foods and drinks.

Total Fat Intake

The total amount of fat consumed in one's diet over a specified period.