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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Definitions:

Thrust Angle

The angle that the rear wheels make relative to the vehicle's longitudinal axis, important for proper alignment and handling.

Camber

The angle of the wheels in relation to the road surface, seen from the front of the vehicle, which can affect tire wear and vehicle handling.

Caster

The angle of the steering axis in a vehicle, which affects stability, steering effort, and cornering behavior.

Zero Toe

A wheel alignment condition where the front of the wheels are parallel to each other, neither pointing towards nor away from the vehicle.