Use the Following Information to Answer the Question(s)below

question 35

Multiple Choice

Use the following information to answer the question(s) below.
You are a risk manager for Security First Trust Savings and Loan (SFTSL) .SFTSL's balance sheet is as follows (in millions of dollars) : The duration of the auto loans is three years and the duration of the mortgages is eight years.Both cash reserves and checking and savings have zero duration.The CDs have a duration of two years and the long-term financing has a ten-year duration.
-If interest rates are currently 5%,but fall to 4%,your estimate of the approximate change in SFTSL equity is closest to:

• A)8% decrease.
• B)12% decrease.
• C)8% increase.
• D)14% increase.

Understand the legal principles surrounding the statute of limitations and waiver of warranty rights.

Grasp the concept of privity and its exceptions in the context of warranties extending to third parties.

Comprehend the conditions and limitations on disclaiming warranties within a contract.

Recognize the requirements to invoke the implied warranty of merchantability and fitness for a particular purpose.

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Definitions:

Energy Saving Device

A device designed to reduce energy consumption without compromising the functionality of the equipment it is attached to.

Original Useful Life

Original Useful Life refers to the expected duration, typically measured in years, during which an asset is considered usable for its intended purpose.

Remaining Book Value

The net amount of an asset or liability recorded on the balance sheet, reflecting original cost adjusted for depreciation, amortization, and impairments.

Salvage Value

The estimated residual value of an asset at the end of its useful life.