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:

Criterion Data

Refers to specific information or sets of information that are used to evaluate or assess performance, outcomes, or characteristics.

Selection Tool

Instruments or techniques used by organizations to evaluate and choose the best candidates for a job.

Work Behaviour

Describes the actions and attitudes of individuals and groups within a workplace, influencing productivity, efficiency, and workplace culture.