Earnings sensitivity analysis does not consider:
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 fixed-rate liabilities due to a change in interest rates.
D) mortgage prepayments.
E) Earnings sensitivity analysis considers all of the above.

Question

Quizplus · Accepted Answer

Earnings sensitivity analysis considers all of the factors listed, including changes in interest rates, changes in the volume of rate-sensitive assets and liabilities due to interest rate changes, and mortgage prepayments, as these can all affect an institution's financial performance.

Earnings Sensitivity Analysis Does Not Consider