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.
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Answer: the cross-price of elasticity of demand for chocolate syrup with respect to the price of milk would be :
e = % ΔQ chocolate syrup / %ΔP of milk
e = -4% / 2%
e = -2 %
Explanation:
Answer:
d. Both A and C
Explanation:
No, the broker must inform the seller in writing the buyer's check is being held until acceptance of offer.
No, the broker must inform the seller of the buyers check being held at the exact time the actual offer is presented.
Answer:
The answer is: A) the study of how prices are determined in the baseball card industry
Explanation:
Microeconomics is concerned with single factors (individuals or an specific company or industry) and the effects of their decisions and allocation of resources. The baseball card industry and their pricing methods enter into this category.
While the country´s unemployment rate, or the Fed´s interest rate, or national politics affect the whole economy, so they part of Macroeconomics.