Business and Personal Finance Dictionary

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• CUMULATIVE GAP
  
  The net sum obtained by adding all of the interval gaps or mismatches between rate-sensitive assets and rate-sensitive liabilities beginning with the first bucket in the gap analysis and proceeding to a selected time. For example, the one-year cumulative gap is the sum of the gaps for all of the time intervals prior to and including the gap bucket ending one year from the date that the report was prepared. A crude and highly inexact measure of interest rate risk.
  
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