9-39 The leverage adjusted duration of a typical depository institution is positive.

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The leverage adjusted duration of a depository institution is typically positive, as these institutions tend to hold long-term assets such as loans and mortgage-backed securities while funding them with short-term liabilities like deposits. This creates a duration mismatch, which means that changes in interest rates can have a significant impact on the institution's earnings and capital position. By adjusting the duration of their assets and liabilities, depository institutions can better manage interest rate risk and improve their financial stability.

9-39 the Leverage Adjusted Duration of a Typical Depository Institution