An alternative version of the gap ratio is defined as rate-sensitive assets divided by ratesensitive liabilities. A gap ratio greater than 1 indicates that there are more rate sensitive assets than liabilities (similar to a gap > 0). Thus, the FI is set to see increases in net interest income when interest rates increase. A gap ratio less than 1 indicates that there are more rate sensitive liabilities than assets (similar to a gap < 0). Thus, the FI is set to see increases in net interest income when interest rates decrease. In our example, the gap ratio is 1.107 meaning that in the one-year-and-less time bucket, the FI has $1.107 of RSAs for every $1 of RSLs. LO.1