A Bank's Liabilities Have an Average Duration of 2 Years

question 40

Multiple Choice

A bank's liabilities have an average duration of 2 years. Its assets have an average duration of 3.5 years. The bank's market value of equity is at risk if ________.

• A)interest rates fall
• B)credit spreads fall
• C)interest rates rise
• D)the price of all fixed income securities rises

Differentiate between ordinary, preferential, and deferred creditors in the context of company liquidation.

Identify and differentiate between joint ventures and joint operations based on their structure and contractual rights and obligations.

Understand the requirements for entering into joint arrangements, including risk management, access to new technology or markets, and control over the arrangement.

Recognize the components and considerations involved in the contracts of joint arrangements.

---

Definitions:

Cross-Cultural

Pertaining to the comparison and analysis of different cultures, often to understand societal norms, values, and behaviors in a global context.

Physical Appearance

Physical appearance denotes the outward look or composition of an individual, encompassing features such as height, skin color, and body shape.

Academics

The study and scholarship in disciplines taught at educational institutions like schools and universities.

Selman's Stages

A theory proposing different stages of social understanding or perspective-taking ability that children develop through.