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:

Ethyl Benzoate

An organic compound formed by the esterification of benzoic acid with ethanol, known for its sweet, flowery scent.

Methanol

A simple alcohol with the chemical formula CH3OH, used as a solvent, antifreeze, or fuel.

HCl

Hydrochloric acid, a strong acidic compound of hydrogen chloride in water, commonly used in industrial and laboratory settings.

Distamycin

A small molecule that binds to minor grooves of DNA, notable for its role in scientific research related to DNA interactions.