If a Savings Institution's Assets Have a Considerably Longer Duration

question 43

Multiple Choice

If a savings institution's assets have a considerably longer duration than its liabilities, it can reduce its exposure to interest rate risk by

• A) reducing its proportion of assets in the short duration categories.
• B) increasing its proportion of liabilities in the short duration categories.
• C) increasing its proportion of liabilities in the long duration category.
• D) A and B

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Definitions:

Number of Unemployed

The total count of individuals who are actively seeking work but are currently without a job.

Labor-force Participation Rate

The percentage of the working-age population that is active in the labor market, either employed or actively seeking employment.

Labor Force

The total number of people employed and unemployed but looking for work within an economy.

Employed Category

A classification within labor market statistics representing individuals who are currently employed and working.