A Bank's Cumulative GAP

question 40

Multiple Choice

A bank's cumulative GAP:

• A) is defined as the dollar amount of rate-sensitive assets divided by the dollar amount of rate-sensitive liabilities.
• B) is defined as the dollar amount of earning assets divided by the dollar amount of total liabilities.
• C) compares rate-sensitive assets with rate-sensitive liabilities across all time buckets.
• D) compares rate-sensitive assets with rate-sensitive liabilities across a single time bucket.
• E) compares the dollar amount of earning assets times the average liability interest rate.

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Definitions:

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