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:

Rock Powder

Finely ground rock that can be used as a soil amendment to provide minerals and nutrients for plant growth.

Sand

A grain or rock fragment smaller than 2 mm and larger than 1/16 mm.

Rounded Stones

Stones with smooth edges and surfaces typically resulting from extended water or wind erosion and abrasion.

Broken Shells

Shell fragments resulting from mechanical damage or natural wear and tear.