A Positive Gap (Or Gap Ratio of More Than 1

question 51

True/False

A positive gap (or gap ratio of more than 1.00)suggests that rate-sensitive liabilities exceed rate-sensitive assets.

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Definitions:

Return On Equity

A measure of a corporation's profitability, indicating how much profit a company generates with the money shareholders have invested.

Debt-Equity Ratio

A measure that indicates the balance between equity contributed by shareholders and debt employed to finance company assets.

Return On Equity

A gauge of corporate profitability that indicates the profit made from the investments of its shareholders.

Return On Assets

A financial ratio that indicates the percentage of profit a company earns in relation to its overall resources. It demonstrates how effectively a company is using its assets to generate earnings.