gap ratio

Definition

The value of all interest rate-sensitive assets divided by the value of all interest rate-sensitive liabilities owned by a firm.

Use gap ratio in a sentence

I did not know what the gap ratio was and it made me wonder exactly what was going to happen next.

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You should try and accurately predict what the gap ratio will be so that you know if it will be worth pursuing.

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The gap ratio that his company had showed that his assets far outweighed the liabilities and he was very grateful that this was the case.

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