When a Bank Issues Relatively Safe Debt and Uses It

question 2

Multiple Choice

When a bank issues relatively safe debt and uses it to fund relatively risky assets it is creating:

• A) liquidity risk.
• B) credit risk.
• C) interest rate risk.
• D) contingency risk.

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Definitions:

Stress Relief

Methods or strategies used to reduce tension, anxiety, or the physiological and psychological effects of stress.

Entertainment

The act or activity designed to provide pleasure, amusement, or relaxation to an audience, typically involving performances, shows, or games.

Exercise

Physical activities intended to improve strength, fitness, and wellbeing, ranging from walking and swimming to weightlifting and yoga.

Sleep-wake Disorders

Disorders affecting the quality, timing, and amount of sleep, leading to distress and impairment during waking hours.