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Verizon [17]
2 years ago
13

If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in it

s net worth of?
Business
1 answer:
Rasek [7]2 years ago
8 0

The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of  1.8 percent of its assets.

<h3>What do you mean by Duration Gap?</h3>

Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.

Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.

Thus, in this case, 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 1.8 percent of its assets.

Learn more about Duration gap here:

brainly.com/question/7276068

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What is a good way to guard against disorderly cash records or cash loss?
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<span>What is a good way to guard against disorderly cash records or cash loss? Prompt reconciliation of the bank statements. By reconciliation the bank statements quickly, it allows for quick correction of incorrect money dispersement to make sure the statements balance each other out. Making sure the accounting records are accurate is vital to a company and their cash on hand amount.  </span>
6 0
3 years ago
Beneficiary-facing content that includes generic or plan-specific product or benefit information must be submitted for review an
Harlamova29_29 [7]

This is a true statement that Beneficiary-facing content that includes generic or plan-specific product or benefit information must be submitted for review and cms submission, as well as acceptance or approval, prior to distribution.

<h3>What is distribution?</h3>

The term "distribution" refers to spreading a product out over the market so that many people may purchase it. These actions are involved in distribution: 1. A reliable transportation system to deliver the commodities to various locations. Distribution is the process of distributing things to clients. One example of distribution is the transportation of rice from Asia to the US.

Therefore,

Beneficiary-facing content that includes generic or plan-specific product or benefit information must be submitted for review and cms submission, as well as acceptance or approval, prior to distribution. This is a true statement.

To learn more about distribution from the given link:

brainly.com/question/14926605

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8 0
11 months ago
Identifying your sources will help you to establish credibility.
koban [17]

Answer:

True

Explanation:

Identifying your sources help your audience believe that your information is reliable.

4 0
3 years ago
Many adults owe money from their college loans for years into their professional careers. a newspaper would like to estimate the
Sergio039 [100]

Because only young adults were sampled, undercoverage bias may cause the newspaper to overestimate the proportion of all adults who have college debts.

<h3><u>What is bias in sampling?</u></h3>

When a sample is chosen in statistics, sampling bias is a bias that causes some individuals of the target population to have a lower or greater sampling probability than others. As a result, not every person or event was equally likely to have been chosen, resulting in a biased sample of a population (or non-human variables).

If this is not taken into consideration, results may be incorrectly attributed to the sampling procedure rather than the phenomenon being studied. Although some people identify sampling bias as a distinct sort of prejudice, sampling bias is typically categorized as a subtype of selection bias, sometimes referred to as sample selection bias.

Learn more about sampling bias with the help of the given link:

brainly.com/question/11094051

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7 0
1 year ago
Pro Corp., a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB), which has a current exch
aleksklad [387]

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Exchange rate of 1 Baht= $0.022

Expected inflation in united states (Assume) = 3% = 0.03

Expected inflation in Thailand (Assume) = 10% = 0.10

Computation:

After 1 year  rate of 1 Baht in Dollar

The price in US = 1 × (1+0.03) = $1.03

The price in Thailand = 1 × (1+0.10) = 1.10 baht

1 baht = 1.03×0.022÷1.1 = $0.0206

Therefore, 1 baht = $0.21 (approx)

4 0
3 years ago
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