Which of the following is (are) a potential problem(s) in the use of dollar gap analysis?
A) assets and liabilities may well have different maturities
B) assets and liabilities may have different correlations with the movement of interest rates
C) focuses on net interest income
D) a, b, and c

Question

Quizplus · Accepted Answer

Dollar gap analysis can be problematic because it may not account for differences in maturities and interest rate sensitivities between assets and liabilities (A and B), and it primarily focuses on net interest income (C), potentially overlooking other important financial metrics.

Which of the Following Is (Are) a Potential Problem(s) in the Use