A method of measuring the interest rate or gap exposure of an FI is

Question

Quizplus · Accepted Answer

All of the mentioned models are used for measuring interest rate or gap exposure of a financial institution. 
- Duration model measures the sensitivity of a portfolio to changes in interest rates. 
- Maturity model measures the average maturity of an FI's assets and liabilities. 
- Repricing model measures the change in interest income or expensed generated by the repricing of assets and liabilities. 
- Funding gap model measures the difference between the amounts of rate-sensitive assets and liabilities that will reprice during a given period.

Therefore, all these models are useful for measuring different aspects of an FI's interest rate or gap exposure.

A Method of Measuring the Interest Rate or Gap Exposure