The GAP Ratio

question 47

Multiple Choice

The GAP ratio:

• A) is always greater than one for bank's with a negative periodic GAP.
• B) is equal to the volume of rate-sensitive liabilities times the volume of rate-sensitive assets.
• C) is equal to the volume of rate-sensitive liabilities divided by the volume of rate-sensitive assets.
• D) is equal to the volume of rate-sensitive assets divided by the volume of rate-sensitive liabilities.
• E) is always less than one for bank's with a positive cumulative GAP.

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