Use the Following Bank Information for Questions -What Is the Weighted Average Duration of Liabilities?
A) 1

question 1

Multiple Choice

Use the following bank information for questions .
$\begin{array}{|l|l|l|l|l|l|l|l|}\hline &\begin{array}{c}\text { Market } \\\text { Value }\end{array} &\text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} & \begin{array}{c}\text { Liabilities }\\\text { and } \\\text { Equity }\end{array} & \begin{array}{c}\text { Market } \\\text { Value }\end{array} & \text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} \\\hline\text { Cash } & \$ 150 & && \text {Time Deposits } & \$ 500 & 4 \% & 1.25 \\\hline \text { Loans } & \$ 675 & 10 \% & 2.50 &\text { CDs } & \$ 400 & 6 \% & 3.00 \\\hline\text { T-Bonds }&\$175&5\%&5.00&\text { Equity }&\$100&&\\\hline\text { Total }&\$1,000&&&&\$1,000\\\hline\end{array}$
-What is the weighted average duration of liabilities?

• A) 1.25 years
• B) 2.03 years
• C) 2.12 years
• D) 3.00 years
• E) 4.25 years

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Definitions:

European Countries

Nations located on the continent of Europe, each with its distinct geography, culture, and government.

European Slave Traders

Individuals or entities from Europe who engaged in the capture, transportation, and sale of African people into slavery from the 16th to 19th centuries.

African Slaves

People from Africa who were forcibly taken from their homeland, trafficked to other parts of the world, and subjected to slavery by various powers from the 16th to 19th centuries.

European Planters

European Planters were individuals of European descent who owned and operated large agricultural estates, primarily in the colonies, relying heavily on slave labor to grow cash crops like tobacco, sugar, and cotton.