The Larger the Size of an FI, the Larger the _________

question 5

Multiple Choice

The larger the size of an FI, the larger the _________ from any given interest rate shock.

• A)duration mismatch
• B)immunisation effect
• C)net worth exposure
• D)net interest income

---

Definitions:

Moles

A unit in chemistry that represents 6.022 x 10^23 particles of a given substance, used to express the amount of a chemical substance.

Temperature

An indication of how hot or cold a substance is, determined by the average kinetic energy of its particles.

Ideal Gas Law

A fundamental equation that relates pressure, volume, temperature, and the amount of gas, represented as PV = nRT.

Hydrogen Gas

A colorless, odorless, highly flammable gas, the lightest of all gases, used in various industrial processes.