Because of Its Simplicity, Smaller Deposit-Taking Institutions Still Use This

question 87

Multiple Choice

Because of its simplicity, smaller deposit-taking institutions still use this model as their primary measure of interest rate risk.

• A)The repricing model.
• B)The maturity model.
• C)The duration model.
• D)The convexity model.
• E)The option pricing model.

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Definitions:

Machine Language

The lowest level of programming language, consisting of binary or hexadecimal codes that a computer's processor can execute directly.

Intel Chipsets

Integrated circuits designed by Intel that are used to communicate and manage the flow of data between the processor and other components within a computer.

MS-DOS

Microsoft Disk Operating System, an operating system for x86-based personal computers mostly used during the 1980s and early 1990s.

Computer Language

A set of instructions and syntax used to create programs that enable computers to perform specific tasks.