Measuring the Sensitivity of Bank Profits to Changes in Interest

question 29

Multiple Choice

Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap for several maturity subintervals times the change in the interest rate is called

• A)basic gap analysis.
• B)the maturity bucket approach to gap analysis.
• C)the segmented maturity approach to gap analysis.
• D)the segmented maturity approach to interest-exposure analysis.

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Definitions:

Pollination

The process by which pollen is transferred from the male parts of a plant to the female parts of a plant, enabling fertilization and the production of seeds.

Bees

Flying insects known for their role in pollination and for producing honey and beeswax.

Honey

A sweet, viscous substance produced by bees from the nectar of flowers, commonly used as a natural sweetener.

Dependent Premises

Arguments where the premises are linked so that they support the conclusion only when considered together.