Duration Matching Is a Desirable Interest Rate Risk Management Tool

question 1

True/False

Duration matching is a desirable interest rate risk management tool as it captures changes in interest rates over long periods of time.

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Definitions:

General Adaptation Syndrome

A three-phase process (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Severe Cold

An intense or acute condition of the common cold, characterized by symptoms such as fever, cough, congestion, and body aches.

Exhaustion

Describes a state of extreme physical or mental fatigue, often resulting from prolonged stress or activity without adequate rest and recovery.

General Adaptation Syndrome

A three-stage physiological response to stress that consists of alarm, resistance, and exhaustion phases, as proposed by Hans Selye.