9-63 an FI Has Financial Assets of $800 and Equity

question 5

Multiple Choice

9-63 An FI has financial assets of $800 and equity of $50.If the duration of assets is 1.21 years and the duration of all liabilities is 0.25 years,what is the leverage-adjusted duration gap?

• A)0.9000 years.
• B)0.9600 years.
• C)0.9756 years.
• D)0.8844 years.
• E)Cannot be determined.

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Definitions:

Molecular Polarity

A measure of how evenly electric charges are distributed in a molecule, affecting its interactions with other molecules.

Polar Molecule

A molecule featuring a distribution of electrical charge leading to one end being slightly positive and the other end slightly negative.

Molecular Polarity

This concept describes the distribution of electrical charge over the atoms joined by chemical bonds in a molecule, determining the molecule’s overall polarity.

Polar Molecule

A molecule with an uneven distribution of charge due to differences in electronegativity between bonded atoms, resulting in a dipole moment.