Measuring the Sensitivity of Bank Profits to Changes in Interest

question 15

Multiple Choice

Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap for several maturity subintervals by the change in the interest rate is called

• A) basic gap analysis.
• B) the segmented maturity approach to gap analysis.
• C) the maturity bucket approach to gap analysis.
• D) the segmented maturity approach to interest-exposure analysis.
• E) none of the above.

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