The Average Duration of the Loans Is 10 Years -What Is the Leveraged-Adjusted Duration Gap of the Bank's Portfolio

question 89

Multiple Choice

The average duration of the loans is 10 years. The average duration of the deposits is 3 years. $$\begin{array} { | l | r | l | r | } \hline \text { Consumer loans } & \$ 50 \text { million } & \text { Deposits } & \$ 235 \text { million } \\\hline \text { Commercial Loans } & \$ 200 \text { million } & \text { Equity } & \$ 15 \text { million } \\\hline \text { Total Assets } & \$ 250 \text { million } & \text { Total Liabilities \& Equity } & \$ 250 \text { million } \\\hline\end{array}$$
-What is the leveraged-adjusted duration gap of the bank's portfolio?

• A)10 years.
• B)7.3 years.
• C)7 years.
• D)7.18 years.
• E)3 years.

Explain consumer surplus and how it is affected by changes in price.

Grasp the first law of demand.

Understand the effect of government policy changes on demand elasticity.

Apply the concept of marginal analysis in production decisions.

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Definitions:

Mainstreaming

The practice of integrating children with special needs into regular classrooms as much as possible.

Intellectual Disability

A syndrome denoted by considerable deficiencies in both mental functioning and adaptive behavior, which includes a spectrum of critical social and daily life skills.

Special Education

Tailored educational programs designed to meet the unique needs of students with disabilities or learning challenges.

Pronominal Reversal

The incorrect use of pronouns, often observed in the speech development of children and in certain neurological conditions, where "I" and "you" might be swapped.