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    Exam 7: Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques
  5. Question
    Havoc State Bank Has a Loan That It Fears Will
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Havoc State Bank Has a Loan That It Fears Will

Question 8

Question 8

Multiple Choice

Havoc State Bank has a loan that it fears will not be repaid because the company is going into bankruptcy.What type of risk would this be an example of?


A) Default risk
B) Inflation risk
C) Liquidity risk
D) Call risk
E) Basis risk

Correct Answer:

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