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

question 96

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 FI's maturity gap?

• A)-2.03 years.
• B)-2.50 years.
• C)-1.07 years.
• D)-0.70 years.
• E)-0.40 years.

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Definitions:

Stockholders

Individuals or entities that own one or more shares of stock in a public or private corporation, which represents a share in its ownership.

Market Pressures

The forces exerted by supply and demand within a marketplace that influence business decisions, product pricing, and economic policies.

High Profiles

Entities or individuals receiving a significant amount of public attention or media coverage, often due to their status, actions, or positions.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.