The repricing model measures the impact of unanticipated changes in interest rates on
A)the market value of equity.
B)net interest income.
C)both market value of equity and net interest income.
D)the FI's capital position.

Question

Quizplus · Accepted Answer

The repricing model focuses on the impact of interest rate changes on net interest income by analyzing the timing differences in the repricing of assets and liabilities.

The Repricing Model Measures the Impact of Unanticipated Changes in Interest