Which of the Following Is False

question 32

Multiple Choice

Which of the following is false?

• A)FIs use diversification and expert credit analysis to manage credit risk.
• B)FIs use adjustable rate loans, forwards, futures, options, swaps, and securitizations to manage interest rate risk.
• C)Liquidity risk is managed by the ability to borrow funds.
• D)Exchange rate risk is managed by the ability to borrow funds at a fixed exchange rate.

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Definitions:

Victimless Crimes

Involve violations of the law in which no victim has stepped forward and been identified.

Crime Indexes

Statistical measures that track the incidence and categories of crimes within a given area to assess safety and crime trends.

Violent Crime

Acts of crime that involve force or threat of force against individuals, including assault, robbery, and homicide.

Non-Negligent Manslaughter

The unlawful killing of another person without the intention to do so, in circumstances not amounting to murder.