First Duration Bank Has the Following Assets and Liabilities on Its

question 25

Multiple Choice

First Duration Bank has the following assets and liabilities on its balance sheet:
-What is the FI's leverage-adjusted duration gap?

• A)0.91 years.
• B)0.83 years.
• C)0.73 years.
• D)0.50 years.

---

Definitions:

Chargeout Rate

The price charged by a business or professional for their services, often calculated to cover costs and generate profit.

Realisation Rate

The percentage of billable time or work that is actually charged or billed to clients, often used in professional services to evaluate profitability.

Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all expenses have been accounted for.

Hybrid Costing System

A costing methodology that combines elements of both job costing and process costing, used in manufacturing of goods with some common and some unique characteristics.