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51.The risk that interest income will increase at a slower rate than interest expense is: A. credit risk. B. political risk. C. currency risk. D. interest rate risk. 52.The risk that borrowers are unable to repay their loans on time is called: 53.A letter of credit is: 54.Matching the foreign currency book protects the FI from: 55.During periods of high and volatile inflation, an FI's: A. interest rate risk exposure and credit risk exposure tends to decrease.
B. interest rate risk exposure and credit risk exposure tends to increase.
C. interest rate risk exposure and credit risk exposure tends to be unaffected.
D. None of the listed options are correct.
9 56.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? 57.Technological risk: 58.The BIS definition 'the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events' encompasses which of the following risks? 59.A primary purpose of maintaining the safety and soundness of banks is to: a.encourage loan growth. b.protect depositors. c.ensure liquidity for the stock market. d.prevent discrimination.
minimize bank losses.