In interest rate risk measurement, the repricing model has the following weakness: Select one: a....
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Accounting
In interest rate risk measurement, the repricing model has the following weakness: Select one: 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. All of the listed options are correct
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