If a Bank That Relies Heavily on Short-Term Deposits for Its

question 13

Multiple Choice

If a bank that relies heavily on short-term deposits for its funds replaces its investment in long-term Treasury securities with more floating-rate commercial loans, it is likely that the bank's exposure to

• A)credit risk would decrease.
• B)credit risk would increase.
• C)interest rate risk would increase.
• D)None of the above.

---

Definitions:

Iron Intake

Iron intake refers to the consumption of iron, a crucial mineral necessary for the production of hemoglobin, through diet or supplements to prevent or treat iron deficiency anemia.

Breast Milk

The milk produced by human breasts or mammary glands, specifically to feed infants and babies.

Active

Engaged in action; not passive, involving engagement in physical or mental activities.

Posterior Tibial Pulse

The pulse felt over the posterior tibial artery, located behind the inner ankle, which can provide information about circulatory health.