The Duration Gap Can Be Used to Measure How Changes

question 62

Multiple Choice

The duration gap can be used to measure how changes in the interest rate affect an FI's:

• A)net worth
• B)maturity gap strategy
• C)liquidity strategy
• D)All of the listed options are correct.

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Definitions:

Seismic Waves

Vibrations that travel through the Earth's interior or along its surface, produced by earthquakes or human activity.

Seismic Stations

Facilities equipped to detect, record, and measure seismic waves generated by earthquakes or other seismic events.

Hypocenter

The place where an earthquake is generated; synonym: the focus.

Strike-slip Fault

A type of fault where the movement of the Earth's crust is predominantly horizontal, parallel to the strike of the fault.