Which of the Following Is Not a Weakness of the Repricing

question 41

Multiple Choice

Which of the following is not 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)It ignores how changes in currency exchange rates affect the market value of assets and liabilities.

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Definitions:

Sensitive Data

Information that is considered private or confidential, including financial, personal, or proprietary data, which requires protection.

Drive Overwrite Program

Software designed to securely erase data from a hard drive by overwriting existing information with patterns of meaningless data, ensuring the original data is unrecoverable.

Remote Desktop

A technology that allows a user to connect to and control a computer from a distant location over a network or the internet.

Remote Assistance

A Windows tool used to remotely access a Windows device. The remote computer displays a prompt requesting permission for remote access. Contrast with Remote Desktop, which does not request permission.