Why are depository institutions and life insurance companies more exposed to credit risk than, for instance, money market managed funds and general insurance companies?
A) Because the average maturities of their assets are longer than those of money market managed funds/general insurance companies.
B) Because the average maturities of their assets are shorter than those of money market managed funds/general insurance companies.
C) They are not exposed to more risk.
D) Because they are not specialised in credit risk management.
Correct Answer:
Verified
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Q2: Which of the following is a suitable
Q3: What does systematic credit risk mean?
A)The risk
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Q6: An FI that holds more short-term assets
Q7: A decrease in interest rates means that
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A)incurred
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