When a Bank Has a Positive Duration Gap a Parallel

question 122

Short Answer

When a bank has a positive duration gap a parallel increase in the interest rates on the assets and liabilities of the bank will lead to a(n)__________________ in the bank's net worth.

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Definitions:

Directional Selection

A natural selection process by which one extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.

Antibiotic Resistance

The ability of microorganisms to withstand the effects of antibiotics, often due to genetic changes.

Directional Selection

A type of natural selection that favors individuals at one extreme end of the phenotypic range, leading to a shift in a population's genetic variance over time.

Pesticide-Resistant

Refers to the ability of pests to withstand chemical treatments designed to kill or control them, often due to genetic mutations and selection pressure.