One Way That Banks Can Reduce the Duration of Their

question 37

Multiple Choice

One way that banks can reduce the duration of their asset portfolios is through the use of

• A)fixed rate mortgages.
• B)adjustable rate mortgages.
• C)certificates of deposit.
• D)short-term borrowing.
• E)none of the above.

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Definitions:

Solar Heating

The process of increasing the temperature of an object, substance, or space using energy directly from the sun.

Sunspot Activity

Phenomena on the Sun's surface that appear as dark spots due to lower temperatures, often associated with magnetic activity.

Greenhouse Gases

Gases in Earth's atmosphere, such as carbon dioxide and methane, that trap heat and contribute to global warming.

Volcanic Eruption

The discharge of molten rock, ash, and gases from a volcano, which can impact climate, air quality, and landscapes.