The fundamental problem with traditional gap analysis is its focus on net interest income rather than on the return on assets.
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Q7: A defensive strategy attempts to keep the
Q8: A defensive strategy is necessarily a passive
Q9: Assuming a one-year horizon, a bank with
Q10: Using maturity buckets create multiple gaps.
Q11: One method of dealing with the problem
Q13: Duration gap focuses directly on the market
Q14: A bank with a positive duration gap
Q15: If a bank expected interest rates to
Q16: Forecasts of changes in the market value
Q17: Duration drift refers to the drift in
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