Use the Following Table to Answer the Question

question 117

Multiple Choice

Use the following table to answer the question :

-Assuming that the average duration of its assets is four 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 ________ by ________ of the total original asset value.

• A)decline;5 percent
• B)decline;10 percent
• C)decline;15 percent
• D)increase;20 percent

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Definitions:

Alogia

A reduction in speech output or content, often observed in schizophrenia and other psychiatric conditions.

Word Salads

A speech disorder characterized by incoherent, jumbled words and phrases, often seen in severe mental illnesses like schizophrenia.

Clangs

A form of speech pattern where words are chosen based on sound rather than meaningful connections, often seen in bipolar disorder or schizophrenia.

Restricted Affect

A significant reduction in the expression of emotional responses to situations.