Because of Its Simplicity, Smaller Depository Institutions Still Use This

question 39

Multiple Choice

Because of its simplicity, smaller depository 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:

Acknowledging

The act of recognizing or admitting the existence or truth of something.

Toilet Trained

The process by which a young child learns to use the toilet for urination and defecation.

Anal

Often associated with a personality type that is meticulous, obsessive, and rigid; derived from Freud's theory of psychosexual development.