Which of the Following Would Be an Example of Interest

question 50

Multiple Choice

Which of the following would be an example of interest rate risk?

• A)A bank manager embezzles $1,000,000 from the bank.
• B)A bank that loses $500,000 from trading in foreign currencies.
• C)A $1,000,000 loan given to a business on which no interest or principal has been collected in 2 years.
• D)A bank manager predicts interest rates will rise.However,interest rates fall causing the bank's net income to fall by $250,000.
• E)All of the options are examples of interest rate risk.

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