8-56 Which of the Following Is a Weakness of the Repricing

question 60

Multiple Choice

8-56 Which of the following is a weakness of the repricing model to measure interest rate risk?

• A)Potential for overaggregation 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.
• D)It fails to recognize off-balance-sheet activities that may be rate sensitive.
• E)All of the above.

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Definitions:

Case Manager

A professional who coordinates and manages the various health and social services needed by a client or patient.

Brokering

The role of mediating or negotiating between parties to facilitate agreements or provide services.

Nursing Home

A residential facility for individuals who require constant medical care and assistance with daily living activities.

Contact Person

An individual designated as the primary point of communication within an organization or between organizations for a specific purpose.