Which of the Following Is not a Disadvantage of Static

question 45

Multiple Choice

Which of the following is not a disadvantage of static GAP analysis?

• A) Static GAP analysis depends on the forecasted interest rates.
• B) Static GAP analysis often considers demand deposits as non-rate sensitive.
• C) Static GAP analysis does not consider the cumulative impact of interest rate changes on the bank's position.
• D) Static GAP analysis does not consider a depositor's early withdrawal option.
• E) All of the above are disadvantages of static GAP analysis.

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Definitions:

Forecasting Method

Techniques used to predict future data points, events, or trends based on current and historical data.

Seasonal Indexes

Quantitative measures that adjust data for recurring seasonal effects to better understand underlying trends.

Motor Oil Sales

The volume or amount of motor oil sold within a specific period.

Centered Moving Averages

A method used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles by averaging data points in the middle of a set time window.