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

---

Definitions:

Stress

A psychological and physical response to external pressures or threats, impacting one's emotional and physiological state.

Road Rage

Aggressive or angry behavior exhibited by motorists, which can include gestures, verbal insults, physical threats, or dangerous driving actions directed toward other drivers in an effort to intimidate or release frustration.

Eustress

Positive stress that is beneficial for the individual, often associated with improved performance and positive feelings.

Poverty-related Stress

The stress experienced due to the hardships and challenges associated with living in poverty.