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    Financial System and the Economy Principles
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    Exam 8: An Introduction to Financial Intermediaries and Risk
  5. Question
    If FIs Borrow Short-Term from Depositors and Purchase Long-Term Bonds
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If FIs Borrow Short-Term from Depositors and Purchase Long-Term Bonds

Question 117

Question 117

Multiple Choice

If FIs borrow short-term from depositors and purchase long-term bonds, what risk are they exposed to?


A) liquidity risk
B) credit risk
C) interest rate risk
D) default risk

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