A Bank That Makes Most of Its Long-Term Loans at Adjustable

question 77

Multiple Choice

A bank that makes most of its long-term loans at adjustable interest rates is:

• A) reducing both interest rate and credit risk.
• B) increasing credit risk and reducing interest rate risk.
• C) reducing credit risk and increasing interest-rate risk.
• D) increasing both interest-rate and credit risk.

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Definitions:

Specified Time Range

A defined period during which certain actions are taken or certain conditions apply, often set for achieving goals or completing projects.

Extrinsic Reward

A reward given to an individual that comes from an external source, typically in the form of tangible rewards or public recognition, to motivate behavior.

Praise

The expression of approval, admiration, or commendation directed towards someone for their achievements or qualities.

Self-Actualization

The realization or fulfillment of one's talents and potentials, considered as a drive or need present in everyone.