Which of the Following Will Not Affect a Bank's Duration

question 9

Multiple Choice

Which of the following will not affect a bank's duration estimate for the year?

• A) Prepayments on loans that exceed expectations.
• B) A 20-year corporate bond that is unexpectedly called in 6 months.
• C) Certificates of deposit that are withdrawn early.
• D) Holding a 30-year Treasury bond until maturity.
• E) All of the above will affect a bank's estimated duration for the year.

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Definitions:

Loose-Fitting Clothing

Garments that do not hug the body closely, often recommended for comfort or to avoid restricting circulation and movement.

Solid Waste

Non-liquid waste materials generated from residential, industrial, or commercial activities.

Extra Packaging

Additional wrapping or containers used to protect or contain a product, often criticized for being unnecessary and wasteful.

Crushed Pills

Medications that have been ground into a fine powder, often to facilitate easier swallowing or to mix with food or liquids for those who have difficulty swallowing pills whole.