For a Commercial Bank, When the Average Duration of Assets

question 13

Multiple Choice

For a commercial bank, when the average duration of assets exceeds the average duration of liabilities, the duration gap is

• A) zero
• B) positive.
• C) negative.
• D) B or C

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Definitions:

Abduction

The movement of a limb or other part away from the midline of the body or from another part.

Extremities

The terminal parts of the body—the arms, legs.

Center Line

A reference line that runs down the center of an object or space, commonly used in design and engineering to mark symmetry or alignment.

Aponeurosis

Extension of connective tissue beyond a muscle in round or flattened tendons; a means of insertion or origin of a flat muscle.