In Order to Achieve a Zero Duration Gap, an FI

question 23

Multiple Choice

In order to achieve a zero duration gap, an FI can:

• A)change the duration of its assets only
• B)change the duration of its liabilities only
• C)change the duration of both, assets and liabilities
• D)All of the listed options are correct.

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Definitions:

Expertise

Specialized knowledge or skill in a particular field or area, often acquired through extensive training and experience.

Emotional Hunches

Are intuitive feelings or impressions that someone has, based on emotions rather than on logical or explicit reasoning.

Intuition

The ability to understand or know something immediately, based on feelings rather than facts or evidence.

Big Picture

Understanding of the broader, overall perspective or situation rather than just focusing on details.