Interest rate risk is
A) the risk that arises from lending to a borrower below the market interest rate
B) the risk that arises from the movement of general interest rates which cause the bank's publicly traded assets and liabilities to be revalued by the market.
C) the risk that the depositors get a smaller amount when they withdraw their deposits
D) both a and b
E) both b and c
Correct Answer:
Verified
Q4: The organizational triad of ERM consists of
Q5: To control default risk, the bank can
A)buy
Q6: In banking, liquidity risk is...
A)the risk faced
Q7: The communication triad of ERM consists of
Q8: Default/credit risk for a bank is
A)the risk
Q9: One way to control interest rate risk
Q10: The behavioral biases that typically impede effective
Q11: For a given change in the market
Q13: ERM stands for:
A)excellent risk management
B)enterprise risk management
C)economic
Q14: When interest rate goes up,
A)the bank may
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