If a Bank Has a ____ Duration Gap, Its Average

question 59

Multiple Choice

If a bank has a ____ duration gap, its average asset duration is probably ____ than its liability duration.

• A) negative; smaller
• B) positive; larger
• C) negative; larger
• D) none of the above

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Definitions:

Platelets

A type of blood cell that helps prevent bleeding by forming clots.

Lymph

A clear fluid that circulates through the body via lymphatic vessels, carrying white blood cells and removing bacteria and other waste products.

Plasma

The liquid component of blood in which blood cells are suspended, consisting mostly of water and proteins.

Agglutination

The clumping together of particles, typically cells or proteins, that occurs when an antigen is mixed with its corresponding antibody.