Table 23.2 First National Bank

question 51

Multiple Choice

Table 23.2
First National Bank

-Refer to Table 23.2.Assuming that the average duration of the bank's assets is four years,while the average duration of its liabilities is three years,a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to ________ by ________ of the total original asset value.

• A) decline; 5%
• B) decline; 1.3%
• C) decline; 6.2%
• D) increase; 5%

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Definitions:

Consumer Loyalty

The likelihood of previous customers continually choosing the same brand over competitors due to positive experiences or satisfaction.

Value Chain

The full range of activities that businesses go through to bring a product or service from conception to delivery and beyond.

Distribution Channel

The pathway through which goods or services travel from the producer to the end consumer, possibly involving intermediaries.