Which of the Following Is a Weakness of the Repricing

question 56

Multiple Choice

Which of the following is a weakness of the repricing model to measure interest rate risk?

• A)Potential for over-aggregation of assets and liabilities within each maturity bucket.
• B)It ignores how changes in interest rates affect the market value of assets and liabilities.
• C)It ignores the reinvestment of loan interest and principal payments that are reinvested at current market rates and it fails to recognise off-balance-sheet activities that may be rate sensitive.
• D)All of the listed options are correct.

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A painting method using water-soluble pigments to depict natural scenery.

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A theoretical concept representing the physical manifestation of a memory within the brain.

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The process or ability to maintain and store information or material over extended periods.

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The process of considering, reasoning, or reflecting, often leading to a form of mental judgement or idea.