Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap for several maturity subintervals times the change in the interest rate is called
A) basic gap analysis.
B) the maturity bucket approach to gap analysis.
C) the segmented maturity approach to gap analysis.
D) the segmented maturity approach to interest-exposure analysis.
Answer: B
Economics
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- When the Federal Reserve lowers the reserve requirement, the amount of money in circulation should tend to decrease.(True/False)
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- The demand curve for a firm in a competitive environment is_______.