Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The optimal duration gap is zero.
• B)Duration gap measures the impact of changes in interest rates on the market value of equity.
• C)The shorter the maturity of the FI's securities,the greater the FI's interest rate risk exposure.
• D)The duration of all floating rate debt instruments is equal to the time to maturity.

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Definitions:

Conventional Antipsychotic

A class of drugs typically used to treat symptoms of psychosis, such as hallucinations and delusions, especially in conditions like schizophrenia; known for their dopamine-blocking effects.

Biological Operations

Biological processes and functions carried out by living organisms to maintain life, including growth, reproduction, and response to stimuli.

Dosage-Response Curve

A graph showing the relationship between the dose of a drug and the effect it produces, helping to determine the optimal dose.

Atypical Medications

Psychiatric drugs that differ from traditional medications in their chemical structure or mechanism of action, often used to treat symptoms of mental disorders.