The Raymond Burr National Bank Has $1,000 in Assets with an Average

question 142

Multiple Choice

The Raymond Burr National Bank has $1,000 in assets with an average duration of 5 years.This bank has $800 in liabilities with an average duration of 6.25 years.What is the duration gap of this bank?

• A)-1.25 years
• B)0 years
• C)1.25 years
• D)-2.25 years
• E)None of the options is correct.

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Definitions:

Product Liability Lawsuit

A legal claim brought against a manufacturer, distributor, or seller for damages or injuries caused by a defective or dangerous product.

Defective

Pertaining to a product or good that fails to meet quality standards or is unfit for its intended use due to flaws or errors.

Defendant's Control

The extent to which a defendant has the ability or power to manage, direct, or influence events or outcomes in a legal case.

Market Share Theory

Product liability theory which holds that when it is impossible to identify the manufacturer of a particular product that caused harm, the plaintiff may sue all manufacturers of the product, with liability apportioned among them on the basis of each one’s market share.