Which of the Following Is a Weakness of the Repricing

question 37

Multiple Choice

Which of the following is a weakness of the repricing model to measure interest rate risk?

• A)Potential for overaggregation of assets and liabilities within each maturity bucket.
• B)It ignores how changes in interest rates affect the market value of assets and liabilities.
• C)It ignores the reinvestment of loan interest and principal payments that are reinvested at current market rates.
• D)It fails to recognize off-balance-sheet activities that may be rate sensitive.
• E)All of these.