Assume a Bank Has $200 Million of Assets with a Duration

question 116

Multiple Choice

Assume a bank has $200 million of assets with a duration of 2.5,and $190 million of liabilities with a duration of 1.05. The duration gap for this bank is

• A)0.5 year.
• B)1 year.
• C)1.5 years.
• D)2 years.

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Definitions:

Conversion Disorders

Mental conditions where patients present neurological symptoms, such as paralysis or fits, without a neurological explanation, often due to psychological conflict.

Psychosomatic Disorders

Conditions in which psychological factors play a significant role in the development, manifestation, or exacerbation of physical symptoms.

Cognitive Distortions

Irrational, flawed thoughts that can lead to misinterpretation of reality, often found in negative thinking patterns.

Specific Phobias

A type of anxiety disorder characterized by an excessive and irrational fear of a specific object, situation, or activity that poses little to no real danger.