Discussion 3 Advanced Gap analysis: Attempt it only after reviewing week 9 & 10 lectures & notes

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Discussion 3 Advanced Gap analysis: Attempt it only after reviewing week 9 & 10 lectures & notes

Question

Discussion 3 Advanced Gap analysis: Attempt it only after reviewing week 9 & 10 lectures & notes

(1) Does the income gap have the same sign as the duration gap in the case of the First National Bank, or are they the opposite? .

(2) How about the Friendly Finance Company?

(3) How do you explain this phenomenon, in one sentence?

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This question is taken from Econ 3030 – Money, Banking and the Economy » Fall 2021 » Discussions