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

---

Definitions:

Ordinal Data

A type of categorical data with a set order or scale but without a fixed interval between values.

Rating

An evaluation or assessment, usually expressed as a rank or score, that indicates the quality, performance, or suitability of someone or something.

Restaurant

An establishment where meals are prepared and served to customers in exchange for payment.

Nominal Data

Data that consist of names, labels, or categories without any inherent order or ranking among them.