One reason to include demand deposits when estimating a bank's repricing gap is because rising interest rates could lead to high withdrawals from these accounts.

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Demand deposits are accounts that allow depositors to withdraw funds anytime, without any notice. This means that if interest rates rise, depositors may choose to withdraw their money and move it to higher yielding accounts. Therefore, it is important to include demand deposits in estimating a bank's repricing gap and assessing the potential impact of interest rate changes.

One Reason to Include Demand Deposits When Estimating a Bank's