Duration Analysis Involves Comparing the Average Duration of the Bank's

question 123

Multiple Choice

Duration analysis involves comparing the average duration of the bank's ________ to the average duration of its ________.

• A)securities portfolio;non-deposit liabilities
• B)assets;liabilities
• C)loan portfolio;deposit liabilities
• D)assets;deposit liabilities

Comprehend the accounting methods and procedures for the issuance, amortization, and retirement of bonds.

Identify and define different types of bonds and their specific characteristics.

Apply knowledge of amortization methods for bonds and notes.

Grasp the concept and application of the effective interest method and straight-line method in bond premium and discount amortization.

---

Definitions:

Feet

The lower part of the leg below the ankle, on which a person stands or walks.

Triaxial

Refers to a system or component operating or existing in three distinct axes simultaneously, often used in reference to joints or stress analysis.

Diarthrosis Joint

A type of synovial joint that permits a variety of movements, such as bending, extending, and rotation, exemplified by joints like the knee, elbow, and shoulder.

Hyperextension

An extension of a limb or part beyond its normal limit, which can potentially cause injury.