7-78 The risk that interest income will increase at a slower rate than interest expense is

Name: 7-78 The risk that interest income will increase at a slower rate than interest expense is
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The scenario described is an example of interest rate risk, which refers to the risk that changes in interest rates will result in a mismatch between interest income and interest expense. This occurs when interest rates rise, causing interest expenses to increase faster than interest income.

7-78 the Risk That Interest Income Will Increase at a Slower