Reinvestment risk is: A) risk that assets and liabilities take on new rates at different times B) risk associated with change in market rate differentials across various assets and liabilities C) risk associated with the change in interest rates across various maturities D) risk associated with customers' ability to alter the bank's cashflows via prepayments or withdrawals E) all of the above F) none of the above A bank could reduce asset sensitivity if gap is positive by: A) increasing its long-term securities as a percentage of total assets B) shortening the average maturity of its loans C) replacing fixed rate loans with variable rate loans D) all of the above E) none of the above Risk Bank has a negative GAP position. If a parallel shift downward in interest rates occurs, the bank's net interest income would be expected to: A) Decrease by an amount equal to GAP B) Decrease by an amount equal to GAP times the change in rates C) Increase by an amount equal to GAP D) Increase by an amount equal to GAP times the change in rates Earnings sensitivity analysis involves: A) always using parallel yield curve movements B) ignoring the time at which rates on assets and liabilities change C) forecasting the exercise of embedded options under different economic settings D) requiring that rates on assets and liabilities move by the same amounts E) all of the above