If a Bank Has a Duration Gap of Two Years,a

question 19

Multiple Choice

If a bank has a duration gap of two years,a rise in interest rates from 5 to 8% per annum will lead to a/an:

• A) increase of 5.71% in the market value of its net worth.
• B) fall of 5.71% in the market value of its net worth.
• C) increase of 5.71% in net interest income.
• D) fall of 5.71% in net interest income.

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Definitions:

Peacemaking Criminology

A theory in criminology that emphasizes healing, reconciliation, and the reduction of harm rather than punitive measures.

Nonviolence

A principle or practice of using peaceful methods, rather than force, to bring about political or social change.

Peacemaking Criminologists

Criminologists who emphasize the resolution of conflicts and consider peace and social justice as core principles in addressing crime.

Peacemaking

The process of bringing about peace, especially by reconciling adversaries and establishing a durable agreement or treaty.