The cumulative gap over the whole balance sheet by definition:
A)must be greater than zero
B)must be lower than zero
C)must equal zero
D)can take any value

Question

Quizplus · Accepted Answer

The cumulative gap over the whole balance sheet should equal zero, as it represents the difference between assets and liabilities. Since every asset is matched with a corresponding liability, the cumulative gap should be zero.

The Cumulative Gap Over the Whole Balance Sheet by Definition