If Interest Rates Increase from 9 Percent to 10 Percent,a

question 91

Multiple Choice

If interest rates increase from 9 percent to 10 percent,a bank with a duration gap of 2 years would experience a decrease in its net worth of

• A)0.9 percent of its assets.
• B)0.9 percent of its liabilities.
• C)1.8 percent of its liabilities.
• D)1.8 percent of its assets.

---

Definitions:

Steroid Hormone

A type of hormone derived from cholesterol that plays a role in regulating metabolism, immune function, and development of sexual characteristics.

Calcium Blood Levels

The concentration of calcium in the bloodstream, important for various physiological processes including bone formation, muscle function, and nerve transmission.

Parathyroid Hormone

A hormone produced by the parathyroid glands that regulates calcium levels in the blood and bone metabolism.

Anabolic Steroids

Synthetic substances similar to the male sex hormone testosterone, used to increase muscle mass and strength.