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:

Leif Ericsson

A Norse explorer believed to be the first European to land in North America, approximately 500 years before Christopher Columbus.

Initial Contact

Refers to the first encounters between European explorers and indigenous peoples of the Americas, marking the beginning of significant cultural, social, and environmental changes.

Amerigo Vespucci

An Italian explorer for whom the Americas are named, recognized for demonstrating that Brazil and the West Indies did not represent Asia's eastern outskirts as initially conjectured by Columbus.

Martin Waldseemüller

A German cartographer who created the first map to name and depict the Americas as separate continents, published in 1507.