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:

Assumptions

Beliefs or ideas accepted as true without proof.

Hunches

are intuitions or feelings that guide one's decisions or beliefs without concrete evidence.

Gut-Level Communication

Gut-Level Communication refers to honest, direct communication that comes from deep personal feelings or instinctual reactions.

Genuine Self-Disclosure

The process of openly and honestly sharing one's true thoughts, feelings, and experiences with others, facilitating deeper connections and understanding.