If a Bank Has a ____ Duration Gap, Its Average

question 59

Multiple Choice

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

• A) negative; smaller
• B) positive; larger
• C) negative; larger
• D) none of the above

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Definitions:

Food Shortages

A situation in which the supply of food is insufficient to meet the demand, often resulting in hunger, malnutrition, and increased food prices.

War Communism

An economic and political system that was implemented by the Bolsheviks during the Russian Civil War, characterized by the nationalization of industry and the forced requisition of agricultural produce.

State Ownership

The scenario where assets, enterprises, or properties are owned and controlled by the government rather than private entities.

Economic Policies

Strategies and decisions made by a government concerning the economic management of the country, including taxation, government spending, and interest rates.