An FI Has Financial Assets of $800 and Equity of $50

question 77

Multiple Choice

An FI has financial assets of $800 and equity of $50. If the duration of assets is 1.21 years and the duration of all liabilities is 0.25 years, what is the leverage-adjusted duration gap?

• A)0.9000 years.
• B)0.9600 years.
• C)0.9756 years.
• D)0.8844 years.
• E)Cannot be determined.

---

Definitions:

Access Database

A Microsoft database management system that provides a user-friendly environment for database creation and management.

Excel Workbook

An Excel workbook is a file that contains one or more spreadsheets, enabling users to organize data, perform calculations, and analyze information.

Is Null

A condition or expression used in databases and programming to check if a variable or data field has no value or is empty.

Action Query

A type of query in database systems that performs actions on the data, such as inserting, updating, or deleting records, based on certain criteria.