9-37 Setting the Duration of the Assets Higher Than the Duration

question 30

True/False

9-37 Setting the duration of the assets higher than the duration of the liabilities will exactly immunize the net worth of an FI from interest rate shocks.

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Definitions:

Gross Savings Rate

The total level of savings within an economy expressed as a percentage of total income.

2000

Marks the year notable for events such as the dot-com bubble peak, and the U.S. presidential election, which resulted in George W. Bush's victory.

Mancur Olson

Mancur Olson was an American economist and political scientist known for his work on public goods and his theory of collective action, explaining how individuals can work together to achieve common goals.

Developed Nations

Countries with high levels of industrialization, a higher standard of living, and advanced technological infrastructure.