If a Savings Institutions' Assets Have Considerably Longer Duration Than

question 45

Multiple Choice

If a savings institutions' assets have considerably longer duration than its liabilities, it can reduce its exposure to interest rate risk by

• A)reducing its proportion of assets in the short duration categories.
• B)increasing its proportion of liabilities in the short duration categories.
• C)increasing its proportion of liabilities in the long duration category.
• D)A and B

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Definitions:

Panic Disorder

A psychiatric disorder characterized by sudden and repeated attacks of intense fear that may include physical symptoms, such as heart palpitations, dizziness, or abdominal distress.

Phobias

Persistent, irrational fears of specific objects, activities, or situations that lead to a desire to avoid such objects or situations.

Somatosensory

Relating to the body's sensory system that processes touch, temperature, pain, and proprioception.

Motor Systems

The components of the central and peripheral nervous system that are involved in the movement control of muscles.