True/False
Interest rate risk is part of the loan commitment contingent risk because of the uncertainty of changes in interest rates before the borrower exercises his option to borrow.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q97: Off-balance sheet activities can have both positive
Q98: What is a swap?<br>A)An agreement between two
Q99: The use of letters of credit (LCs)
Q100: The current market value or contingent claim
Q101: The extremely high growth of OBS activities
Q103: One way to completely protect the lender
Q104: Sun Bank has issued a one-year $5
Q105: An FI has assets of $800 million
Q106: The use of an up-front fee by
Q107: The increased regulation of the derivatives markets