For Most Banks, the Average Duration of Liabilities Exceeds the Average

question 14

True/False

For most banks, the average duration of liabilities exceeds the average duration of assets, so the duration gap is positive.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Physical Inventory Count

A process of counting actual inventory to verify the quantity on hand, usually performed at the end of an accounting period.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production.

Long-Term Asset

A resource that is expected to provide economic benefits to a company for more than one fiscal year.