One Problem with Duration Gap Analysis Is That It

question 38

Multiple Choice

One problem with duration gap analysis is that it:

• A) is calculated assuming that the yield curve does not change.
• B) is calculated assuming the yield curve is flat.
• C) does not measure the sensitivity of net worth to interest rate changes.
• D) does not measure the sensitivity of income to interest rate changes.

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Definitions:

Aminopeptidase

An enzyme that removes amino acids from the amino end of proteins, playing a critical role in digestion and other processes.

Enterocytes

Specialized epithelial cells found in the lining of the small intestine, involved in the absorption of nutrients.

Polypeptides

Chains of amino acids linked by peptide bonds, forming the basic structure of proteins.