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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Definitions:

Experimenter Bias

A process where the scientists performing the research influence the results, consciously or unconsciously, in a way that introduces errors or specific outcomes.

Placebo Effect

The phenomenon in which a person experiences a physiological or psychological improvement after being treated with an inert or ineffective substance or intervention.

Sampling Bias

A bias that occurs when a sample is not representative of the population from which it was drawn, potentially leading to inaccurate conclusions.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, potentially skewing research data.