A an Average Asset Duration of 4

question 102

Multiple Choice

A an average asset duration of 4.7 years and an average liability duration of 3.3 years.This bank has $750 million in total assets and $500 million in total liabilities.This bank's leverage-adjusted duration gap is a:

• A)positive gap of 8.0 years.
• B)negative gap of 2.5 years.
• C)positive gap of 1.4 years.
• D)positive gap of 2.5 years.
• E)None of the options is correct.

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Definitions:

Senior Management

The highest level of executives who are responsible for the strategic direction and decisions of an organization.

Being Acquired

The process in which a company is purchased by another company, resulting in the acquired company possibly becoming a subsidiary of the acquiring company.

Acquisition

The act of acquiring control of another corporation or its assets through purchase or stock exchange.

Outstanding Stock

Shares of a corporation that have been issued and are held by investors, including public shareholders and company insiders.