Multiple Choice
Which of the following is false?
A) FIs use diversification and expert credit analysis to manage credit risk.
B) FIs use adjustable rate loans, forwards, futures, options, swaps, and securitizations to manage interest rate risk.
C) Liquidity risk is managed by the ability to borrow funds.
D) Exchange rate risk is managed by the ability to borrow funds at a fixed exchange rate.
Correct Answer:
Verified
Correct Answer:
Verified
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