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  3. Study Set
    Financial Institutions
  4. Exam
    Exam 7: Risks of Financial Institutions
  5. Question
    Which of the Following May Occur When a Sufficient Number
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Which of the Following May Occur When a Sufficient Number

Question 2

Question 2

Multiple Choice

Which of the following may occur when a sufficient number of borrowers are unable to repay interest and principal on loans,thus causing an FI's equity to approach zero?


A) Insolvency risk.
B) Sovereign risk.
C) Foreign exchange risk.
D) Liquidity risk.

Correct Answer:

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