What Is a 'Duration Gap

question 364

Multiple Choice

What is a 'duration gap'?

• A) the average maturity of liabilities on a balance sheet
• B) the difference between the duration of assets and liabilities
• C) the difference between the duration of the longest-held and shortest-held liabilities on the balance sheet
• D) the average maturity of the portfolio on the asset side of a balance sheet

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Definitions:

Spurious Association

A relationship between two variables that appears causal but is actually due to the effect of some external or intervening variable.

Non-Spuriousness Test

A method in statistical analysis to determine if a relationship between two variables is genuine and not due to the influence of some other variable.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on societal norms and identity.

Authentic

Genuine or true to its origins, qualities, or commitments.