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The Repricing Model Ignores Information Regarding the Distribution of Assets

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The repricing model ignores information regarding the distribution of assets and liabilities within maturity buckets.This limitation of the model refers to


Definitions:

Market Value

The ongoing rate for buying or selling a product or service in a trading environment.

Book Value

The net value of an asset or liability according to its balance sheet account balance, accounting for factors like depreciation.

Note Payable

A written promissory note in which one party agrees to pay another party a definite sum of money either on demand or at a specified future date.

Capital Account

This account records the investments made by owners or shareholders into a company, along with retained earnings and accumulated other comprehensive income.

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