The Larger the Numerical Value of the Duration of an Asset

question 48

True/False

The larger the numerical value of the duration of an asset or liability, the less sensitive the price of that asset or liability is to changes in the interest rate.

---

Definitions:

Chief Executive

The highest-ranking executive in a company or government, responsible for making major corporate or policy decisions.

Administrative State

A concept that describes a government in which the executive branch, through various agencies, plays a significant role in regulation and policy implementation beyond traditional law enforcement.

Patronage

The power to control appointments to office or the right to privileges, often used by politicians to reward individuals for their support or loyalty.

Civil Service

A body of government employees selected based on merit rather than political affiliation, tasked with the implementation of public policy.