-What Is This Bank's Interest Rate Risk Exposure, If Any

question 89

Multiple Choice

-What is this bank's interest rate risk exposure, if any?

• A)The bank is exposed to decreasing interest rates because it has a negative duration gap of -0.21 years.
• B)The bank is exposed to increasing interest rates because it has a negative duration gap of -0.21 years.
• C)The bank is exposed to increasing interest rates because it has a positive duration gap of +0.21 years.
• D)The bank is exposed to decreasing interest rates because it has a positive duration gap of +0.21 years.
• E)The bank is not exposed to interest rate changes since it is running a matched book.

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Definitions:

Family Involvement

The participation and engagement of family members in activities and decisions that affect the well-being and development of the family unit.

Family Demographics

Statistical data relating to the characteristics of families within a population, such as size, structure, and socioeconomic status.

Educators

Individuals such as teachers, professors, and trainers who are responsible for teaching and facilitating learning for students at various levels.

Parental Divorce

The legal dissolution of a marriage by a court or other competent body, which results in the separation of the parents.