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When the average duration of its liabilities is four years and the average duration of its assets is three years, then a 5 percentage point
When the average duration of its liabilities is four years and the average duration of its assets is three years, then a percentage point increase in interest rates will cause the net worth of a bank to by of the total original asset value.
A decline; percent
D increase; percent
B decline; percent
C increase; percent
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