Multiple Choice
A bank's IS GAP is defined as:
A) the dollar amount of interest-sensitive assets divided by the dollar amount of interest-sensitive liabilities.
B) the dollar amount of earning assets divided by the dollar amount of total liabilities.
C) the dollar amount of interest-sensitive assets minus the dollar amount of interest-sensitive liabilities.
D) the dollar amount of interest-sensitive liabilities minus the dollar amount of interest-sensitive assets.
E) the dollar amount of earning assets times the average liability interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
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