Earnings sensitivity analysis differs from static GAP analysis by:
A) looking at a wide range of interest rate environments.
B) using perfect interest rate forecasts.
C) calculating a change in net interest income given a change in interest rates.
D) Earnings sensitivity analysis differs from static GAP analysis in all of the above ways.
E) Earnings sensitivity analysis and static GAP analysis do not differ. They are different names for the exact same analysis.
Correct Answer:
Verified
Q31: If a bank expects interest rates to
Q32: Which of the following is not a
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)
Q37: If a bank expects interest rates to
Q38: Which of the following is a way
Q39: The GAP ratio:
A) is always greater than
Q40: Income statement GAP considers:
A) changes in interest
Q41: Non-earning assets are classified as rate-sensitive assets
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