Using the leverage adjusted duration gap, it is possible to measure the effect of changing interest rates on an FI's net worth.

Name: Using the leverage adjusted duration gap, it is possible to measure the effect of changing interest rates on an FI's net worth.
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Quizplus · Accepted Answer

The leverage adjusted duration gap is a measure of sensitivity of an FI's net worth to changes in interest rates. Therefore, it is possible to measure the effect of changing interest rates on an FI's net worth using this method.

Using the Leverage Adjusted Duration Gap, It Is Possible to Measure