If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of
A) 0.9 percent of its assets.
B) 0.9 percent of its liabilities.
C) 1.8 percent of its liabilities.
D) 1.8 percent of its assets.
D
You might also like to view...
A high school student who voluntarily includes a writing sample with their college application is an example of:
A. signaling. B. screening. C. building a reputation. D. statistical discrimination.
Customer discrimination is illegal in the United States
a. True b. False Indicate whether the statement is true or false
Figure 4-10
shows the market for a good before and after an excise tax is imposed. What does the triangular area C represent?
a.
the deadweight loss accompanying the tax
b.
the tax revenue derived from sellers
c.
the tax revenue derived from buyers
d.
the total tax revenue generated by the tax
“Bad theories are abstract and therefore unrealistic; good theories are fully realistic and fit all the facts.” Evaluate
Please provide the best answer for the statement.