Multiple Choice
Why are depository institutions and life insurance companies more exposed to credit risk than, for instance, money market managed funds and general insurance companies?
A) Because the average maturities of their assets are longer than those of money market managed funds/general insurance companies.
B) Because the average maturities of their assets are shorter than those of money market managed funds/general insurance companies.
C) They are not exposed to more risk.
D) Because they are not specialised in credit risk management.
Correct Answer:
Verified
Correct Answer:
Verified
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