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

question 76

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.Market interest rates start at 6 percent and fall by 1 percent.What is the change in net worth of this bank?

• A)$11.29
• B)-$11.29
• C)$0
• D)-$22.22
• E)$22.22

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Definitions:

Nonspectral Colors

Colors that do not appear in the spectrum because they arise from the mixing of various wavelengths of light, such as purple, magenta, or pink.

Additive Color Mixing

A method of creating color by mixing various amounts of red, green, and blue light, used in technologies like computer screens and televisions.

Trichromatic Theory

A theory of color vision that suggests the human eye has three types of receptors with differing sensitivities to different light wavelengths, typically referred to as blue, green, and red receptors.

Receptors

Specialized cells or proteins in the body that bind to specific molecules, triggering a response.