Duration GAP is a conceptually superior method to assess the interest rate risk of a financial institution than $GAP.

Name: Duration GAP is a conceptually superior method to assess the interest rate risk of a financial institution than $GAP.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Duration GAP takes into account the timing and cash flow of assets and liabilities, providing a more comprehensive measure of interest rate risk compared to the simple dollar GAP, which only considers the difference in the value of assets and liabilities.

Duration GAP Is a Conceptually Superior Method to Assess the Interest