Which of the Following Observations About the Repricing Model Is

question 93

Multiple Choice

Which of the following observations about the repricing model is correct?

• A)Its information value is limited.
• B)It accounts for the problem of rate-insensitive asset and liability runoffs and prepayments.
• C)It accommodates cash flows from off-balance-sheet activities.
• D)It helps to determine an FI's profit exposure to interest rate changes.
• E)It considers market value effects of interest rate changes.

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