Multiple Choice
An increase in interest rates means that the discount rate on cash flows is:
A) decreased and thus the market value of an FI's assets and liabilities decreases
B) increased and thus the market value of an FI's assets and liabilities decreases
C) increased and thus the market value of an FI's assets and liabilities increases
D) decreased and thus the market value of an FI's assets and liabilities increases
Correct Answer:
Verified
Correct Answer:
Verified
Q29: What type of risk focuses upon future
Q31: Matching the foreign currency book does not
Q32: An FI that matches the maturities of
Q33: Credit risk puts both the principal loaned
Q35: A high-quality loan book for Australian banks
Q36: An example of refinancing risk is a
Q37: What does systematic credit risk mean?<br>A)The risk
Q38: An example of a discrete risk is
Q39: The BIS definition 'the risk of loss
Q43: Which of the following situations pose a