Duration Gap Analysis

question 16

Multiple Choice

Duration gap analysis:

• A) applies he the concept of duration to the bank's entire balance sheet.
• B) applies he the concept of duration to the bank's entire income statement.
• C) applies he the concept of duration to the bank's retained earnings.
• D) indicates the difference in the GAP in the time it takes to collect on loan payments versus the time to attract deposits.
• E) estimates when embedded options will be exercised.

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Definitions:

Anti-Federalist

Individuals who opposed the creation of a strong federal government and the ratification of the Constitution in late 18th century America, preferring power to remain with states.

James Winthrop

An American lawyer, judge, and writer in the late 18th and early 19th centuries, known for his anti-federalist views.

Bill of Rights

constitutes the first ten amendments to the United States Constitution, guaranteeing fundamental civil rights and liberties to American citizens.

Hector St. John Crèvecoeur

A French-American writer known for his work "Letters from an American Farmer," which provided insights into American life and identity in the late 18th century.