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:

Wobble Plate

A mechanical component used in axial piston pumps or engines to convert rotational motion into linear motion, or vice versa, through its off-center rotation.

Pumping Action

The process of moving fluid through a system or component via mechanical or manual force.

Vane Type Pump

A Vane Type Pump is a hydraulic pump in which slotted rotor vanes are used to move fluid through the pump, widely used for their reliability and efficiency in transferring fluids at variable flow rates.

Rotor

Any of a number of different components that rotate. In air brakes, the rotor turns with the wheel and has braking force applied to it, whereas in an alternator, the rotor provides the magnetic fields required to create current flow.