In the repricing gap model, assets or liabilities are rate-sensitive within a given time period if the dollar values of each are subject to receiving a different interest rate should market rates change.

Question

Quizplus · Accepted Answer

The statement accurately describes the concept of rate-sensitivity within the repricing gap model. Assets or liabilities are considered rate-sensitive if their dollar values would be affected by a change in market interest rates within a given time period.

In the Repricing Gap Model, Assets or Liabilities Are Rate-Sensitive