Which of the following is a method banks use to deal with interest rate risk?
A) gap analysis
B) restrictive covenants
C) specialization
D) compensating balances

Name: Which of the following is a method banks use to deal with interest rate risk? A) gap analysis B) restrictive covenants C) specialization D) compensating balances
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Question

Quizplus · Accepted Answer

Gap analysis is a method used by banks to manage interest rate risk by analyzing the gap between assets and liabilities that reprice or mature within a certain time frame.

Which of the Following Is a Method Banks Use to Deal