The Average Maturity of the Liabilities of an FI's Balance

question 58

Multiple Choice

The average maturity of the liabilities of an FI's balance sheet is equal to

• A)the weighted-average of the liabilities where the weights are determined relative to the total liabilities and equity of the FI.
• B)the weighted-average of the liabilities where the weights are determined relative to the total liabilities of the FI.
• C)the weighted-average of the liabilities where the weights are determined relative to the total assets of the FI.
• D)the weighted-average of the liabilities where the weights are determined using market values of liabilities.
• E)None of these.

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Definitions:

Sequence

An ordered list or arrangement of items, events, or actions following a specific logical or systematic pattern.

Predominant Factor Test

A legal doctrine used to classify a transaction within the framework of the Uniform Commercial Code (UCC) by determining the main purpose of the contract.

Liberally Administered

A principle or policy applied in a manner that is flexible, generous, or not strictly in accordance with strict rules or formalities.

Aggrieved Party

An individual or entity that has suffered legal wrong or harm, and who is entitled to bring a lawsuit against the party responsible for that harm.