Duration Bank Has the Following Assets and Liabilities as of Year-End

question 101

Multiple Choice

Duration Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually.
-What is the FI's maturity gap?

• A)-2.03 years.
• B)-2.50 years.
• C)-1.07 years.
• D)-0.70 years.

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Definitions:

Sharecroppers

Laborers who farm land owned by another person and pay rent either in cash or as a portion of the crop, commonly in the post-Civil War South in the United States.

Cotton

A soft, fluffy staple fiber that grows in a boll around the seeds of cotton plants, used in the textile industry.

Cotton Production

The cultivation and harvesting of cotton plants, primarily for the textile industry, historically a major driver of the economy, especially in the American South.

Egypt

A country in North Africa, known for its ancient civilization and notable landmarks like the Pyramids and the Great Sphinx of Giza.