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.
Correct Answer:

Verified
Correct Answer:
Verified
Q51: What is meant by the 'runoff' problem
Q52: Consider the following table: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4571/.jpg" alt="Consider
Q53: The bank has a positive repricing gap.Is
Q54: Which of the following statements is true?<br>A)Cheque
Q55: Which of the following statements is true?<br>A)A
Q57: Consider the following repricing buckets and
Q58: CGAP effect is the relationship between changes
Q59: Consider the following repricing buckets and
Q60: How do you interpret the position of
Q61: What is spread effect?<br>A)Periodic cash flow of