Use the Following Table to Answer the Question

question 67

Multiple Choice

Use the following table to answer the question :

-Assuming that the average duration of its assets is five years,while the average duration of its liabilities is three years,then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by ________ of the total original asset value.

• A)5 percent
• B)10 percent
• C)15 percent
• D)25 percent

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Definitions:

Leukemia

A cancer variety that targets the blood and bone marrow, evidenced by the excessive proliferation of abnormal white blood cells.

Cardiomyopathy

A condition affecting the heart muscle, leading to a decreased ability for the heart to circulate blood throughout the body.

Blue

A color in the spectrum visible to the human eye, occupying the band approximately halfway between green and violet.

Musculoskeletal

Referring to the system of muscles and skeletons in the body and its related disorders.