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:

"EatMore" Drug

Description not specific to a recognized pharmacological substance or term - NO.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Experimental Group

A group of subjects in an experiment who are exposed to the independent variable to assess its effect, compared to a control group.

Smallest Unit

The fundamental, indivisible particle or component of a system, often referring to cells in biology or atoms in chemistry.