Interest rate risk is the risk incurred by an FI when the maturities of its assets and liabilities are mismatched.

Name: Interest rate risk is the risk incurred by an FI when the maturities of its assets and liabilities are mismatched.
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Interest rate risk arises when an FI's assets and liabilities have different maturities, leading to potential losses if interest rates change. This is often referred to as maturity mismatch risk.

Interest Rate Risk Is the Risk Incurred by an FI