1.What is a maturity bucket in the repricing model? Why is the length of time selected for repricing assets and liabilities important when using the repricing model? LO 5.3 1.The repricing model requires specification of repricing buckets. Why must a bucket time period be specified? How does the choice of the repricing bucket impact on the delineation between rate-sensitive and fixed-rate assets and liabilities?

What determines the optimal length of the repricing period? What are the shortcomings of very short repricing periods?

What are the shortcomings of very long repricing periods? LO 5.3