The Numbers Provided by Fourth Bank of Duration Are in Thousands

question 116

Multiple Choice

The numbers provided by Fourth Bank of Duration are in thousands of dollars. Notes: All Treasury bills have six months until maturity. One-year Treasury notes are priced at par and have a coupon of 7 percent paid semiannually. Treasury bonds have an average duration of 4.5 years and the loan portfolio has a duration of 7 years. Term deposits have a 1-year duration and the Interbank deposits duration is 0.003 years. Fourth Bank of Duration assigns a duration of zero (0) to demand deposits. What is the duration of the bank's Treasury portfolio?

• A)1.07 years.
• B)1.00 year.
• C)0.98 years.
• D)0.92 years.
• E)Insufficient information.

Identify the implications of significant accounting principles such as the measurement (cost) principle, the full disclosure principle, and the materiality constraint.

Recognize how specific legislations impact accounting practices and corporate governance.

Differentiate between asset and liability accounts within the framework of the balance sheet.

Understand the assumptions underlying the preparation of financial statements, including the monetary unit assumption and the time period assumption.

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Definitions:

DNA Pol III

An enzyme involved in DNA replication, responsible for synthesizing new strands of DNA in bacteria.

Polynucleotide Chain

A biopolymer composed of 13 or more nucleotide monomers covalently bonded in a sequence, forming part of the structure of DNA and RNA.

Nucleotide Excision Repair

A DNA repair mechanism that removes and correctly replaces a damaged DNA segment in the genome.

Nuclease

An enzyme that cleaves the chains of nucleotides in nucleic acids into smaller units.