Put the Following Steps for Conducting a Static GAP Analysis

question 18

Multiple Choice

Put the following steps for conducting a Static GAP analysis in the proper chronological order.
I. Forecast changes in net interest income for a variety of interest rate scenarios.
II. Select the sequential time intervals for determining when assets and liabilities are rate-sensitive.
III. Group assets and liabilities into time “buckets.”
IV. Develop interest rate forecasts.

• A) I, II, III, IV
• B) IV, I, III, II
• C) IV, I, II, III
• D) II, III, IV, I
• E) IV, II, III, I

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Definitions:

Auscultate

The act of listening to the internal sounds of the body, typically using a stethoscope, for diagnostic purposes.

Stethoscope

A medical instrument used for listening to sounds within the body, such as the heartbeat or breathing, essential for diagnoses.

Methodical

Characterized by a systematic, orderly approach to tasks or procedures, often leading to accurate and thorough outcomes.

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, for medical diagnosis.