10-1 Market risk is the uncertainty of an FI's earnings resulting from changes in market conditions such as interest rates and asset prices.

Question

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Market risk is defined as the risk of losses resulting from fluctuations in market conditions, including interest rates and asset prices, which can affect the value of an FI's assets and liabilities, as well as its earnings and capital.

10-1 Market Risk Is the Uncertainty of an FI's Earnings