-What Is the Weighted Average Maturity of the Assets of |

question 1

Multiple Choice

$$\begin{array} { | l | r | r | l | r | c | } \hline \text { Assets } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} & \text { Liabilities } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} \\\hline \text { 2-year loans } & \$ 40 & 8 \% & \text { 3-year CD } & \$ 60 & 7 \% \\\hline \text { 3-year loans } & \$ 60 & 8 \% & \text { 5-year term deposit } & \$ 30 & 6 \% \\\hline & & & \text { Equity } & \$ 10 & \\\hline \text { Total } & \$ 100 & & \text { Total } & \$ 100 & \\\hline\end{array}$$
-What is the weighted average maturity of the assets of the FI?

• A)2.0 years.
• B)2.3 years.
• C)2.5 years.
• D)2.6 years.
• E)3.0 years.

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Definitions:

Conception

The process of forming an idea or the initial stage when an idea, theory, or plan is formed in the mind.

Birth

marks the process of coming into life or entering the world, typically referring to the moment when a baby emerges from its mother's womb.

Rooting Reflex

An involuntary movement seen in newborns, who turn their head towards anything that strokes their cheek or mouth, aiding in breastfeeding.

Newborn

A baby from birth to four weeks old, in the very first stages of life outside the womb.