Duration Gap Analysis

Multiple Choice

Duration gap analysis:

A) applies he the concept of duration to the bank's entire balance sheet.
B) applies he the concept of duration to the bank's entire income statement.
C) applies he the concept of duration to the bank's retained earnings.
D) indicates the difference in the GAP in the time it takes to collect on loan payments versus the time to attract deposits.
E) estimates when embedded options will be exercised.