8-46 The gap ratio expresses the reprice gap for a given time period as a percentage of
A)equity.
B)total liabilities.
C)current liabilities.
D)total assets.
E)current assets.

Question

Quizplus · Accepted Answer

The gap ratio relates the reprice gap, which is the difference between the rate-sensitive assets and rate-sensitive liabilities, to the size of the bank's balance sheet. Therefore, it is expressed as a percentage of total assets.

8-46 the Gap Ratio Expresses the Reprice Gap for a Given