Income statement GAP considers:
A) changes in interest rates.
B) changes in the volume of rate-sensitive assets due to a change in interest rates.
C) changes in the volume of fix-rate liabilities due to a change in interest rates.
D) mortgage prepayments.
E) Income statement GAP considers all of the above.

Question

Quizplus · Accepted Answer

Income statement GAP primarily considers changes in interest rates and their impact on the net interest income of a financial institution. It does not directly account for changes in the volume of assets or liabilities or mortgage prepayments.

Income Statement GAP Considers