If a Bank Has a Duration Gap of 2 Years,then

question 45

Multiple Choice

If a bank has a duration gap of 2 years,then a fall in interest rates from 6 percent to 3 percent will lead to

• A) a rise in the market value of its net worth of 5.66 percent.
• B) a fall in the market value of its net worth of 5.66 percent.
• C) a rise in net interest income of 5.66 percent.
• D) a fall in net interest income of 5.66 percent.
• E) an unknown change.

Determine a company's net profit margin percentage.

Assess the company's return on equity.

Compute the company's gross margin percentage.

Calculate earnings per share for a company.

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Definitions:

Ingroup Bias

The tendency to favor and prioritize the members of one's own group over those of another.

Outgroup Homogeneity

The tendency to view members of an outgroup as more similar to one another than members of one's own group (ingroup).

Wealthy People

Individuals possessing a significant amount of capital, assets, or resources, well above the financial average of the general population.

Ill-Gotten Gains

Profits or benefits acquired dishonestly or through unethical means.