The difference between rate-sensitive liabilities and rate-sensitive assets is known as the ________.

Question

Quizplus · Accepted Answer

The difference between rate-sensitive liabilities and rate-sensitive assets is known as the gap. Duration measures the sensitivity of an individual security or portfolio to changes in interest rates, and is not specific to the difference between rate-sensitive liabilities and assets. Interest-sensitivity index and interest-rate risk index are not commonly used terms in the financial industry.

The Difference Between Rate-Sensitive Liabilities and Rate-Sensitive Assets Is Known