The duration of a bank's assets equals
A) the asset's market value divided by the market interest rate.
B) the market interest rate divided by the asset's market value.
C) the percentage change in the asset's market value divided by the percentage change in the market interest rate.
D) the percentage change in the market interest rate divided by the percentage change in the asset's market value.
Correct Answer:
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Q68: Which of the following statements is NOT
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A)the duration of fixed-rate assets.
B)the vulnerability
Q70: Collateral is
A)the interest rate that banks charge
Q71: Banks use "credit-risk analysis" to
A)determine the appropriate
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Q74: Banks experience interest rate risk
A)if adverse selection
Q75: The prime interest rate is the
A)interest rate
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Q78: Customers who have long-term relationships with banks
A)pose
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