Duration Bank Has the Following Assets and Liabilities as of Year-End

question 57

Multiple Choice

Duration Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. What is the weighted average maturity of the assets of the FI?

• A)2.0 years.
• B)2.3 years.
• C)2.5 years.
• D)2.6 years.
• E)3.0 years.

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Definitions:

Behaviors

The actions or reactions of an organism, often in response to its environment.

Selfish Herd Effect

Animal groups arise from the collective tendency of individuals to reduce their risk of danger by drawing near one another.

Parental Care

The behaviors and actions of parents to support the survival, growth, and development of their offspring.

Genetic Variation

The diversity in gene frequencies within a population, arising through mutations, gene flow, and sexual reproduction, fueling evolutionary changes.