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.
Correct Answer:
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Q44: Overaggregation within maturity buckets using the repricing
Q50: The gap ratio expresses the reprice gap
Q51: An FI finances a $250,000 2-year fixed-rate
Q52: If interest rates decrease 40 basis points
Q52: An FI's net interest income reflects
A)its asset-liability
Q53: When repricing all interest-sensitive assets and all
Q56: The repricing gap approach calculates the gaps
Q57: The net worth of a bank is
Q58: What is spread effect?
A)Periodic cash flow of
Q60: If the average maturity of assets is
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