The Numbers Provided Are in Millions of Dollars and Reflect

question 74

Multiple Choice

The numbers provided are in millions of dollars and reflect market values:
-A risk manager could restructure assets and liabilities to reduce interest rate exposure for this example by

• A)increasing the average duration of its assets to 9.56 years.
• B)decreasing the average duration of its assets to 4.00 years.
• C)increasing the average duration of its liabilities to 6.78 years.
• D)increasing the average duration of its liabilities to 9.782 years.

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Definitions:

Involuntary

Occurring without the individual's conscious control; often refers to physiological responses or reflex actions.

Cardiac

Pertaining to the heart and its functions.

Muscle

Tissues in the body that have the ability to contract, making movement possible.

Epithelial

Relating to epithelium, a tissue composed of a layer of cells that line the surfaces and cavities of organs and vessels throughout the body.