When interest rate goes up,
A) the bank may lose money as some borrowers will refinance their loans
B) the bank may make a profit as some borrowers will refinance their loans
C) if the borrowers have an option to prepay, the borrowers are less likely to refinance their loans
D) the bank will charge lower borrowing rate to attract new borrowers
E) both b and d
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
Q12: Interest rate risk is
A)the risk that arises
Q13: ERM stands for:
A)excellent risk management
B)enterprise risk management
C)economic
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