The Cumulative Gap Over the Whole Balance Sheet by Definition

question 29

Multiple Choice

The cumulative gap over the whole balance sheet by definition:

• A)must be greater than zero
• B)must be lower than zero
• C)must equal zero
• D)can take any value

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a quarterly basis.

Compound Interest

The interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Present Value

The assessed current value of a future monetary amount or series of financial flows, at a given rate of return.