The Average Duration of the Loans Is 10 Years What Is the Leveraged-Adjusted Duration Gap of the Bank's Portfolio

question 37

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 leveraged-adjusted duration gap of the bank's portfolio?

• A)10 years.
• B)7.3 years.
• C)7 years.
• D)7.18 years.

---

Definitions:

Units

Measurements or quantities of a product or service, often used as a basis for transactions and inventory.

Budgeting Formulas

Mathematical expressions or equations used in the process of allocating resources and planning for future financial activities.

Food and Supplies

Items required for the preparation and serving of food in various industries, including restaurants and hospitality.

Tenant-Days

A measure used in property management to quantify occupancy, calculated by multiplying the number of tenants by the number of days they occupied a space.