One Reason to Exclude NOW Accounts When Estimating a Bank's

question 12

True/False

One reason to exclude NOW accounts when estimating a bank's repricing gap is because the interest rates paid on these accounts typically do not change with the level of market rates.

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Definitions:

Cognitive Dissonance

The psychological stress experienced when a person holds two conflicting thoughts, beliefs, attitudes, or values.

Attitudinal Shift

A change in belief or perspective often resulting from information, experience, or persuasion.

Cheating

Engaging in dishonest or unfair actions to gain an advantage, commonly associated with academic, relationship, or sport contexts.

Dissonance Magnitude

Refers to the degree of conflict or discomfort experienced when holding two or more contradictory beliefs, values, or attitudes.