Diversification in the loan portfolio of an FI is intended to reduce systematic risk of each of the loans in the portfolio.
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Q13: In the case where a borrower defaults
Q14: FIs that make loans or buy bonds
Q15: FIs that make long-term loans are less
Q16: If an FI holds long-term assets funded
Q17: An FI is exposed to reinvestment risk
Q19: Credit risk stems from non-repayment or delays
Q20: An FI that has liability maturities longer
Q21: During a liquidity crisis assets might be
Q22: One cause of liquidity risk occurs when
Q23: Direct foreign investment and foreign portfolio investment
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