8-16 Runoff in demand deposits in a repricing model is typically lower during periods of falling interest rates.

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In a repricing model, demand deposits are more likely to stay in the bank during periods of falling interest rates because customers are not actively seeking higher returns on their cash. Therefore, the runoff (or withdrawal) of demand deposits is lower during this time compared to periods of rising interest rates when customers may move their money to higher-yielding accounts.

8-16 Runoff in Demand Deposits in a Repricing Model Is