Question: How many CGAP scenarios are possible under various changes in interest rates and the net interest income (NII)? Which of the following statements is wrong?

How many CGAP scenarios are possible under various changes in interest rates and the net interest income (NII)?

Which of the following statements is wrong?

Question 8 options:

1)

CGAP can be zero

2)

net interest income is fully characterized by CGAP

3)

Changes in Net Interest Income can be negative

4)

The interest rate spread on bank variable-rate loans and the RBAs cash rate are interrelated in the long term

please justify your answer

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