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9-35 the Smaller the Leverage Adjusted Duration Gap,the More Exposed

question 46

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9-35 The smaller the leverage adjusted duration gap,the more exposed the FI is to interest rate shocks.


Definitions:

Ethernet

A family of technologies for local area networks (LANs) that facilitates the interconnection of computers and devices.

LAN

Short for Local Area Network, a computer network that interconnects computers within a limited area such as a residence, school, or office building.

Internet

A global system of interconnected computer networks that use the Internet Protocol suite (TCP/IP) to communicate between networks and devices.

DSL

Digital Subscriber Line; a family of technologies that provide internet access by transmitting digital data over the wires of a local telephone network.

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