
Duration gap analysis
A) is a refinement of basic gap analysis that accounts for interest-rate changes over a multiyear period.
B) is a refinement of basic gap analysis that accounts for how long a gap will last.
C) is a complement to basic gap analysis that accounts for the effect of interest rate changes on market value.
D) is a complement to basic gap analysis that accounts for the influence of partially rate-sensitive assets.
Correct Answer:
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Q35: If First State Bank has a gap
Q36: If a bank has more rate-sensitive assets
Q37: If First National Bank has a gap
Q38: If a bank has a duration gap
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