Which of the Following Is Not a Weakness of the Repricing

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.