The Repricing Model Is a Simplistic Approach to Focusing on the Exposure

question 43

True/False

The repricing model is a simplistic approach to focusing on the exposure of net interest income to changes in market levels of interest rates for given maturity periods.

---

Definitions:

Horst and Graben

Geological structures where a horst is a raised block of the earth's crust bordered by faults, and a graben is a lowered block of the earth's crust bordered by parallel faults.

Forearc Basin

A sedimentary basin that lies between the volcanic arc and the trench in a convergent plate boundary.

Sedimentary Unit

A layer of sedimentary rock with distinguishable characteristics that set it apart as a visually identifiable segment of a stratigraphic sequence.

Pluton

A body of intrusive igneous rock that solidified below the surface of the earth.