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

---

Definitions:

Advance Directives

Legal documents that allow individuals to specify their medical treatment preferences in advance, should they become unable to make decisions for themselves.

Resocialization

The process by which individuals learn new norms, values, attitudes, and behaviors, replacing those previously held, often occurring in new or changed environments.

Group Therapy

A form of psychotherapy involving one or more therapists working with several individuals simultaneously, often beneficial for sharing experiences and strategies among participants.

Focused Assessment

A concise evaluation targeting a specific issue, organ system, or part of the body, often used in healthcare to quickly determine the status or condition of a patient.