Which of the following statements concerning a bank's leverage-adjusted duration gap is true?
A)If it has a positive duration gap and interest rates rise,its net worth will decline.
B)If it has a positive duration gap and interest rates fall,its net worth will decline.
C)If it has a negative duration gap and interest rates rise,its net worth will decline.
D)If it has a negative duration gap and interest rates fall,its net worth will increase.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements concerning a bank's leverage-adjusted duration gap is true?
A)If it has a positive duration gap and interest rates rise,its net worth will decline.
B)If it has a positive duration gap and interest rates fall,its net worth will decline.
C)If it has a negative duration gap and interest rates rise,its net worth will decline.
D)If it has a negative duration gap and interest rates fall,its net worth will increase.
E)All of the options are correct.

Which of the Following Statements Concerning a Bank's Leverage-Adjusted Duration