One Problem with Basic Gap Analysis Is That It

question 60

Multiple Choice

One problem with basic gap analysis is that it

• A) is calculated assuming interest rates on all maturities are equal.
• B) is calculated assuming interest rates on all maturities change by equal amounts.
• C) measures the sensitivity of net worth to interest rate changes.
• D) does not measure the sensitivity of income to interest rate changes.
• E) applies only to financial institutions.

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Definitions:

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, intangible level.

Physical Aggression

Acts intended to cause physical harm or injury to another person.

Sex Role Inventory

A psychological test that measures how much an individual endorses traditional masculine or feminine behaviors and traits, often used in gender studies.

Instrumentality

The perception or belief about the extent to which a particular action will lead to a desired outcome.