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Table 23.2 First National Bank

Question 30

Multiple Choice
Table 23.2 First National Bank -Refer to Table 23.2.Assuming that the average duration of the bank's assets is four years,while the average duration of its liabilities is three years,a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to ________ by ________ of the total original asset value.

Table 23.2
First National Bank
Table 23.2 First National Bank -Refer to Table 23.2.Assuming that the average duration of the bank's assets is four years,while the average duration of its liabilities is three years,a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to ________ by ________ of the total original asset value. A) decline; 5% B) decline; 1.3% C) decline; 6.2% D) increase; 5%
-Refer to Table 23.2.Assuming that the average duration of the bank's assets is four years,while the average duration of its liabilities is three years,a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to ________ by ________ of the total original asset value.


A) decline; 5%
B) decline; 1.3%
C) decline; 6.2%
D) increase; 5%

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