Multiple Choice
Use the following table to answer the question :
-Assuming that the average duration of its assets is four years,while the average duration of its liabilities is three years,then a 5 percentage point increase in interest rates will cause the net worth of First National to ________ by ________ of the total original asset value.
A) decline;5 percent
B) decline;10 percent
C) decline;15 percent
D) increase;20 percent
Correct Answer:

Verified
Correct Answer:
Verified
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