Which of the following is not a disadvantage of static GAP analysis?
A) Static GAP analysis depends on the forecasted interest rates.
B) Static GAP analysis often considers demand deposits as non-rate sensitive.
C) Static GAP analysis does not consider the cumulative impact of interest rate changes on the bank's position.
D) Static GAP analysis does not consider a depositor's early withdrawal option.
E) All of the above are disadvantages of static GAP analysis.
Correct Answer:
Verified
Q27: Earnings sensitivity analysis does not consider:
A) changes
Q28: Which of the following does not have
Q29: Interest rate risk for banks arises largely
Q30: What type of GAP analysis directly measures
Q31: If a bank expects interest rates to
Q33: To decrease liability sensitivity, a bank can:
A)
Q34: To increase asset sensitivity, a bank can:
A)
Q35: A bank's cumulative GAP will always be:
A)
Q36: Earnings sensitivity analysis differs from static GAP
Q37: If a bank expects interest rates to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents