The aggregate commitment funding risk can increase the cost of funds above normal levels.
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Q30: The use of letters of credit (LCs)
Q31: A contractual commitment to make a loan
Q32: In the U.S., commercial banks are the
Q33: An upfront fee is the fee imposed
Q34: Derivative products used in managing contingent credit
Q36: Basis risk occurs on a loan commitment
Q37: An up-front fee on a loan commitment
Q38: Loan commitment activities increase the insolvency exposure
Q39: To avoid being exposed to dramatic declines
Q40: As compared to letters of credit (LCs),
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