Which of the Following Statements Is True

question 66

Multiple Choice

Which of the following statements is true?

• A)The optimal duration gap is zero.
• B)Duration gap measures the impact of unanticipated changes in interest rates on the market value of equity.
• C)The shorter the maturity of the FI's securities, the greater the FI's interest rate risk exposure.
• D)The duration of all floating rate debt instruments is equal to the time to maturity.

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Definitions:

Preliminary Treatment

Preliminary Treatment involves initial medical or therapeutic interventions that are carried out after an initial diagnosis to address immediate needs or stabilize a condition before further, more specific treatments are applied.

Negotiated Behaviors

Actions or practices that are agreed upon by individuals or groups after discussion to ensure mutual benefit or understanding.

Group Guidelines

Established rules or principles meant to guide behavior and interaction within a group, aiming to facilitate cooperation, respect, and productive outcomes.

Individual Interviews

One-on-one discussions used for gathering information, understanding personal viewpoints, or conducting qualitative research.