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:

Reengineering

The radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, and quality, often involving the use of technology.

Pulse Survey

A quick, frequent survey designed to capture the immediate sentiments or feedback of a group, often used in the context of employee engagement.

Ford Motor Company

An American multinational automaker founded by Henry Ford, known for revolutionizing vehicle manufacturing through the use of assembly lines.

Customer Satisfaction

The degree to which a product or service meets or exceeds the customer's expectations.