Multiple Choice
Which of the following observations about the repricing model is correct?
A) Its information value is limited.
B) It accounts for the problem of rate-insensitive asset and liability runoffs and prepayments.
C) It accommodates cash flows from off-balance-sheet activities.
D) It helps to determine an FI's profit exposure to interest rate changes.
E) It considers market value effects of interest rate changes.
Correct Answer:
Verified
Correct Answer:
Verified
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