Use the Following Bank Information for Questions -What Is the Bank's Duration Gap?
A) 0

question 12

Multiple Choice

Use the following bank information for questions .
$\begin{array}{|l|l|l|l|l|l|l|l|}\hline &\begin{array}{c}\text { Market } \\\text { Value }\end{array} &\text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} & \begin{array}{c}\text { Liabilities }\\\text { and } \\\text { Equity }\end{array} & \begin{array}{c}\text { Market } \\\text { Value }\end{array} & \text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} \\\hline\text { Cash } & \$ 200 & && \text {Time Deposits } & \$ 600 &2.0 \% & 1.500 \\\hline \text { Loans } & \$ 800 & 8.0 \% & 3.750 &\text { CDs } & \$ 500 & 4.5 \% & 3.125 \\\hline\text { T-Bonds }&\$250&4.0\%&7.250&\text { Equity }&\$150&&\\\hline\text { Total }&\$1,250&&&&\$1,250\\\hline\end{array}$
-What is the bank's duration gap?

• A) 0.53
• B) 0.73
• C) 0.91
• D) 1.88
• E) 4.58

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Definitions:

Nonconformists

Individuals who reject or do not follow prevailing social norms or practices.

Amygdala

A part of the brain involved in experiencing emotions, especially fear and pleasure.

Spatial Orientation

A cognitive understanding and perception of the environmental features around oneself and their relative position.

Rostral Cingulate Cortex

A region in the brain associated with emotional regulation, decision-making, empathy, and anticipation of reward, playing a significant role in social and cognitive processes.