One Way That Banks Can Reduce the Duration of Their

question 42

Multiple Choice

One way that banks can reduce the duration of their asset portfolios is through the use of

• A) fixed rate mortgages.
• B) adjustable rate mortgages.
• C) certificates of deposit.
• D) short-term borrowing.
• E) none of these.

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Definitions:

Medial Rectus

A muscle in the eye responsible for moving the eyeball towards the nose, part of the extraocular muscles.

Temporal Lines

Curved lines on the lateral surfaces of the skull where the temporalis muscle attaches, important for chewing movements.

Thyroid Cartilage

The largest cartilage of the larynx, forming the Adam's apple in the neck.