The Measure of Interest Rate Risk That Uses the Difference

question 14

Multiple Choice

The measure of interest rate risk that uses the difference between rate-sensitive assets and rate-sensitive liabilities is called

• A) gap measurement.
• B) duration measurement.
• C) duration ratio.
• D) gap ratio.

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Definitions:

Code Requirements

Regulations and standards set forth in legal or regulatory documents that dictate the design, construction, operation, and maintenance of buildings and other structures.

Wrongfully Rejected

The unjustified refusal of acceptance of something, often referring to goods or services that should have been accepted under contractual terms.

Good Faith Purchaser

An individual who buys property without knowledge of any existing claims or defects against the title of the property.

Insolvent

Insolvent describes a state where an individual or organization cannot meet its financial obligations or pay its debts as they become due.