Interest rate risk is the risk financial institutions face due to changes in market interest rates.

Name: Interest rate risk is the risk financial institutions face due to changes in market interest rates.
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Question

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Interest rate risk is a real and significant risk for financial institutions. If interest rates move against an institution's holdings (e.g., if rates rise and the asset is fixed-rate), this can lead to significant losses.

Interest Rate Risk Is the Risk Financial Institutions Face Due