According to the CGAP effect,when CGAP is positive the change in NII is negatively related to the change in interest rates.

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Quizplus · Accepted Answer

The CGAP (Cumulative Gap) effect indicates that when CGAP is positive, the change in Net Interest Income (NII) is positively related to the change in interest rates, meaning that an increase in interest rates would typically lead to an increase in NII for a bank with a positive CGAP.

According to the CGAP Effect,when CGAP Is Positive the Change