Multiple Choice
Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap for several maturity subintervals by the change in the interest rate is called
A) basic gap analysis.
B) the segmented maturity approach to gap analysis.
C) the maturity bucket approach to gap analysis.
D) the segmented maturity approach to interest-exposure analysis.
E) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: If interest rates rise by 5 percentage
Q11: Duration analysis involves comparing the average duration
Q12: If a decline in interest rates causes
Q13: If a bank has more rate-sensitive liabilities
Q14: Credit rationing occurs when lenders charge higher
Q16: Of the following methods that banks might
Q17: Explain how banks benefit from specialization in
Q18: If First State Bank has a gap
Q19: To be profitable,financial institutions must overcome the
Q20: A bank manager concerned about interest income