Overaggregation within maturity buckets using the repricing model causes inaccurate accounting of asset and liability cash flows and, ultimately, net interest income.

Question

Quizplus · Accepted Answer

Overaggregation of cash flows within maturity buckets can lead to inaccurate calculations of net interest income as it can lead to misrepresentations of the timing and size of cash flows.

Overaggregation Within Maturity Buckets Using the Repricing Model Causes Inaccurate