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What Are the Weaknesses of Using Static GAP Analysis Versus

Question 6

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What are the weaknesses of using static GAP analysis versus duration gap analysis?


A) Static GAP ignores the time value of money.
B) Static GAP ignores the cumulative impact of interest rate changes on a bank's risk profile.
C) Static GAP does not proscribe the treatment of demand deposits.
D) All of the above are weaknesses of using static GAP analysis versus duration gap analysis.
E) a.and b.

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