Depository institutions have the lowest interest-rate risk of all the types of financial institutions.

Name: Depository institutions have the lowest interest-rate risk of all the types of financial institutions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depository institutions, like banks and credit unions, often have significant interest-rate risk because their business models involve borrowing short-term (e.g., deposits) and lending long-term (e.g., mortgages), making them sensitive to changes in interest rates.

Depository Institutions Have the Lowest Interest-Rate Risk of All the Types