To measure ____ risk, some savings institutions measure the duration of their respective assets and liabilities.
A)credit
B)interest rate
C)liquidity
D)None of these are correct.

Question

Quizplus · Accepted Answer

Interest rate risk is measured by comparing the duration of assets and liabilities, as changes in interest rates can affect the value of both, impacting the institution's financial stability.

To Measure ____ Risk, Some Savings Institutions Measure the Duration