8-31 If the Average Maturity of Assets Is 4 Years

question 89

True/False

8-31 If the average maturity of assets is 4 years and the average maturity of liabilities is 4 years,then the FI has no interest rate risk exposure.

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Definitions:

Land

A natural resource or property without buildings that is regarded as an asset on a balance sheet, representing the ground on which any structures or improvements can be made.

Balance Sheet

A financial statement that presents a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Construct

In a financial or accounting context, "construct" could refer to the process of building or developing financial models, budgets, or forecasts.

Warehouse

A large building where goods are stored before they are distributed to stores or consumers.