If a bank attempts to reduce exposure to interest rate risk by replacing long-term marketable securities with more floating-rate commercial loans, it is likely that the bank's
A) credit risk would decrease.
B) credit risk would increase.
C) liquidity risk would increase.
D) liquidity risk would decrease.
E) B and C

Question

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The Answer of If a bank attempts to reduce exposure to interest rate risk by replacing long-term marketable securities with more floating-rate commercial loans, it is likely that the bank's
A) credit risk would decrease.
B) credit risk would increase.
C) liquidity risk would increase.
D) liquidity risk would decrease.
E) B and C

If a Bank Attempts to Reduce Exposure to Interest Rate