Which of the following indicates a positive gap according to the repricing model?
A) the book value of rate-sensitive liabilities is less than the book value of rate-sensitive assets.
B) the book value of rate-sensitive assets is less than the book value of rate-sensitive liabilities.
C) the market value of rate-sensitive assets is less than the market value of rate-sensitive liabilities.
D) the book value of rate-sensitive liabilities is greater than the book value of rate-sensitive assets.
E) the market value of rate sensitive assets is greater than the market value rate sensitive liabilities.
Correct Answer:
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