Conyers Bank Holds U

question 47

Multiple Choice

Conyers Bank holds U.S.Treasury bonds with a book value of $30 million.However, the U.S.Treasury bonds currently are worth $28,387,500. If the portfolio manager wants to shorten the bank's asset maturity, what type of risk is she concerned about?

• A)Credit risk.
• B)Foreign exchange rate risk.
• C)The risk of rising interest rates.
• D)The risk of falling interest rates.
• E)Default risk.

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Definitions:

Indian Ocean

The third-largest of the world's oceanic divisions, bounded by Asia to the north, Africa to the west, Australia to the east, and merging with the Southern Ocean to the south.

Class Warfare

The conflict between different socio-economic classes, primarily concerning issues of wealth disparity, social inequality, and political power.

Transnational Bodies

Organizations or entities that operate across national boundaries, influencing or governing aspects of global affairs.

Autonomy

The right or condition of self-government, or the capacity of an individual to make an informed, un-coerced decision.