Weaknesses of the Repricing Model Include the Fact That

question 57

Multiple Choice

Weaknesses of the repricing model include the fact that
I. it ignores changes in present values caused by changes in interest rates.
II. it ignores different cash flow sensitivities within a maturity bucket.
III. it fails to account for runoffs and prepayments.

• A)I only
• B)I and II only
• C)I and III only
• D)II and III only
• E)I,II,and III

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Definitions:

Quaternary Storage

A type of data storage system designed to store large volumes of data using optical or magnetic technology, often for archival purposes.

SSDs

Solid State Drives, a type of non-volatile storage media that uses flash memory to store data, offering faster data access speeds and greater reliability than traditional hard disk drives.

Cost

The amount of money required to purchase, operate, or maintain a product or service or the effort involved in achieving something.

ROM

Read-Only Memory, a type of non-volatile storage media that is programmed with data that cannot be modified, or that can only be modified slowly or with difficulty.