Which of the following is an advantage of static GAP analysis?
A) Static GAP analysis considers the time value of money.
B) Static GAP analysis indicates the specific balance sheet items that are responsible for the interest rate risk.
C) Static GAP analysis considers the cumulative impact of interest rate changes on the bank's position.
D) Static GAP analysis considers the embedded options in loans, such as mortgage pre-payments.
E) All of the above are advantages of static GAP analysis.
Correct Answer:
Verified
Q20: A bank's GAP is defined as:
A) the
Q21: A shift from core deposits to non-core
Q22: Earnings-at-risk:
A) considers only interest rate "shocks."
B) is
Q23: Static GAP analysis focuses on the market
Q24: Static GAP analysis focuses on managing net
Q26: To decrease asset sensitivity, a bank can:
A)
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
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