Which one of the following statements about RS and duration gaps is NOT true?

Question $8$Answer

a$.$

The duration gap considers all cash flows up to and including maturity, whereas the RS gap really only considers how cash flows will change within the planning period.

b$.$

If a bank could only manage one type of gap, the bank would limit its interest rate risk the most by managing its RS gap instead of its duration gap.

c$.$

The duration based estimated change in equity value that occurs with a change in interest rates is only a rough approximation of the actual equity value change.

d$.$

Making the duration gap closer to zero can reduce the volatility of the present value of all future cash flows if interest rates change.

e$.$

The duration gap is superior to the RS gap because it is a more comprehensive measure of interest rate risk.