Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap times the change in the interest rate is called

A) basic duration analysis.
B) basic gap analysis.
C) interest-exposure analysis.
D) gap-exposure analysis.


B

Economics

You might also like to view...

Describe one important criticism of Rostow's stages of economic growth theory

What will be an ideal response?

Economics

Why might Congress benefit from the Fed being self-financed?

A) Self-financing increases Congressional control over the Fed. B) Self-financing reduces the Fed's exposure to external pressures. C) Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend. D) Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.

Economics

The monopolist shown in the above graph


A. is making a profit.
B. is taking a loss.
C. is breaking even.
D. may be making a profit or breaking even.

Economics

The unemployment rate is

A. unemployed/population × 100. B. (employed - labor force)/employed × 100. C. (employed - unemployed)/labor force × 100. D. (labor force - employed)/labor force × 100.

Economics