Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A)One problem with the repricing gap is over-aggregation, which means that while the dollar value of asset-sensitive liabilities and assets within one bucket might be the same, the repricing timing for assets and liabilities within this bucket might differ.
• B)One problem with the repricing gap is over-aggregation, which means that managers cannot make informed decisions about interest rate movements.
• C)An advantage of the repricing gap is over-aggregation, which means that the information provided in the buckets is precise.
• D)None of the listed options are correct.

---

Definitions:

Social Purpose

The objective or intention of an organization to contribute positively to society or specific causes beyond financial gains.

Commoditization

The process by which goods or services become undifferentiated in the eyes of the consumer, leading to competition based primarily on price rather than features or quality.

Leadership

The act of guiding, directing, or influencing a group towards achieving a common goal, often involving qualities such as vision, communication, and decision-making.