Duration Measures Changes in an FI's Net Worth Inaccurately If

question 19

True/False

Duration measures changes in an FI's net worth inaccurately if interest rate changes are large.

---

Definitions:

Asset Purchase

The acquisition of assets from a company, such as equipment, inventory, or intellectual property, as opposed to buying the company's stock or shares.

In-Kind Purchase

Acquiring goods or services through a direct exchange of other goods or services without the use of money.

Shareholder's Derivative Suit

A lawsuit filed by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, alleging harm to the corporation.

Dividend

A distribution of corporate profits or income ordered by the directors and paid to the shareholders.