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8-32 If the Average Maturity of Assets Is 5 Years

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8-32 If the average maturity of assets is 5 years and the average maturity of liabilities is 7 years,then the FI has no interest rate risk exposure.


Definitions:

Gain or Loss

The financial result from selling an asset for more (gain) or less (loss) than its purchase price, important for tax calculations related to capital gains and losses.

Section 1231 Property

Property related to the business or trade, the sale of which may result in ordinary income or capital gains treatment depending on the specifics of the transaction.

Trade or Business

Activities conducted for the purpose of income or profit, engaged in consistently and regularly to qualify as deductible business expenses.

Copyright

Legal protection given to creators of original works, including the right to copy, distribute, and adapt the creation.

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