When Repricing All Interest-Sensitive Assets and All Interest-Sensitive Liabilities in a Balance

question 32

Multiple Choice

When repricing all interest-sensitive assets and all interest-sensitive liabilities in a balance sheet, the cumulative gap will be

• A)zero.
• B)one.
• C)greater than one.
• D)a negative value.
• E)infinity.

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Definitions:

Satisfies

When a mathematical statement or condition holds true or when an argument meets certain criteria or standards.

Inequality

A mathematical expression indicating that two expressions are not equal, using symbols such as ≠, <, >, ≤, ≥.

Annual Insurance

A term referring to insurance coverage that is renewed or applicable for one year, often requiring annual premium payments.

Surcharge

An additional charge, tax, or cost added to the usual cost or bill.