Kizspy | Question: 44
(Choose 1 answer)
FJOVERFLOW.COM
If a bank attempts to reduce exposure to interest rate risk by replacing long-term marketable securities with
more floating-rate commercial loans, it is likely that the bank's
A. (i) default risk would decrease.
B. (ii) default risk would increase.
C. (iii) liquidity risk would increase.
D. Both (ii) and (iii)
