44. Which of the following are likely to occur when Interest rates ri a. Fixed-rate loans are pre-paid. b. Bonds are called. c. Deposits are withdrawn early d. All of the above occur when interest rates rise sharply. e a.and b. se sharplyt 45. Duration gap analysis: a applies the the concept of duration to the bank's entire balance sheet. b. applies th c applies the the concept of duration to the bank's retained earnings. d. indicates the difference in the GAP in the time it takes to collect on loan e the concept of duration to the bank's entire income statement. payments versus the time to attract deposits e estimates when embedded options will be exercised. 46. Modified duration: A estimates when embedded options will be used. B directly indicates how much the price of a security will change given a change in interest rates. C is always greater than maturity. D All of the above E a. and b. 47. Effective duration: estimates when embedded options will be used. b. a. directly indicates how much the price of a security will change given a change in interest rates. c. is always greater than maturity. d. is a weighted average of the time until cash flows are received. e. All of the above 48. includes transaction accounts, MMDAs, savings accounts and small time deposits. a. Retail funding b. Wholesale funding c. Borrowed funding d. Equity funding e. Lockbox funding