What Does a Bank's Duration Gap Measure

Multiple Choice

What does a bank's duration gap measure?

A) The duration of short-term buckets minus the duration of long-term buckets.
B) The duration of the bank's assets minus the duration of its liabilities.
C) The duration of all rate-sensitive assets minus the duration of rate-sensitive liabilities.
D) The duration of the bank's liabilities minus the duration of its assets.
E) The duration of all rate-sensitive liabilities minus the duration of rate-sensitive assets.