When Considering Interest Rate Risk in the Banking Book, Retail

Multiple Choice

When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:

A) should be assumed to have zero duration
B) should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.
C) should be assumed to have a low correlation with money market reference rates
D) represent a minor contributor to interest rate risk and can safely be disregarded