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Question
The GAP ratio:a. is always greater than one for bank's with a negative periodic GAP.
b. is equal to the volume of rate-sensitive liabilities times the volume of rate-sensitive assets.
c. is equal to the volume of rate-sensitive liabilities divided by the volume of rate-sensitive assets.
d. is equal to the volume of rate-sensitive assets divided by the volume of rate-sensitive liabilities.
e. is always less than one for bank's with a positive cumulative GAP.
Answer
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