The Average Duration of the Loans Is 10 Years What Is the Change in the Value of the FI's

question 7

Multiple Choice

The average duration of the loans is 10 years.The average duration of the deposits is 3 years. $\begin{array}{llr}\text { Consumer loans } & \$ 50 \text { million Deposits } & \$ 235 \text { million } \\\text { Commercial Loans } & \$ 200 \text { million Equity } & \$ 15 \text { million } \\\text { Total Assets } & \$ 250 \text { million Total Liabilities \& Equity } & \$ 250 \text { million }\end{array}$ What is the change in the value of the FI's equity for a 1 percent increase in interest rates from the current rates of 10 percent?

• A)-$,979,091.
• B)-$16,318,182.
• C)-$15,979,091.
• D)+$16,318,182.

Recognize the differences and applicability of specific inventory costing methods in various industries.

Understand the environmental challenges cities face and their impacts on the ecosystem.

Identify different types of pollution and their effects on diverse species.

Recognize various forms of mass transit and their roles in urban settings.

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