The Analysis That Involves Measuring an Organisation's Sensitivity of Profits

question 16

Multiple Choice

The analysis that involves measuring an organisation's sensitivity of profits to changes in interest rates,by multiplying the difference in rate-sensitive assets and liabilities by the changes in interest rate,is called:

• A) basic duration analysis.
• B) repricing gap analysis.
• C) interest exposure analysis.
• D) gap-exposure analysis.

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Definitions:

Novelty

Novelty involves the quality of being new, original, or unusual, often sparking interest or curiosity.

Uncertainty

The state of being unsure or having doubts, often involving a situation that is unpredictable or has unknown outcomes.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involving increased heart rate and alertness.

Curiosity

A strong desire to learn or know something, often driving exploration and investigation.