One reason to include demand deposits when estimating a bank's repricing gap is because rising interest rates could lead to high withdrawals.

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Demand deposits refer to funds that a customer can withdraw at any time without penalty or notice. If interest rates rise, customers may choose to withdraw their funds from a bank, which could lead to high withdrawals. Hence, including demand deposits in the repricing gap calculation is important to estimate the potential impact of rising interest rates on a bank's liquidity.

One Reason to Include Demand Deposits When Estimating a Bank's