2-16 Because of the large amount of equity on a typical commercial bank balance sheet,credit risk is not a significant risk to bank managers.

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Credit risk is a significant risk to bank managers as it is directly related to the amount of loans and credit extended by the bank, which represents a significant portion of the bank's balance sheet. If borrowers default on their loans, it can result in losses for the bank and impact its financial stability. Therefore, managing credit risk is a critical function for bank managers.

2-16 Because of the Large Amount of Equity on a Typical