A Bank Is __________________ Against Changes in Its Net Worth

question 13

Short Answer

A bank is __________________ against changes in its net worth if its duration gap is equal to zero.

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Definitions:

Service Revenue

Revenue received by a business from the services it offers to its clients.

Normal Balance

The side of an account, whether debit or credit, where increases in the account are recorded, determined by the account's classification in the accounting equation.

Capital Account

A national account that shows the net change in asset ownership for a country.

Revenue Account

An account that tracks the income earned from a company's primary operations.