Card 9 / 40: Interest rate risk is the risk
A)
incurred when FI's assets are longer term than its liabilities
B)
incurred when the interest rates are too high
C)
incurred by FI when the maturities of its assets and liabilities are mismatched and interest rates are volatile
Answer:
C) incurred by FI when the maturities of its assets and liabilities are mismatched and interest rates are volatile
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