The Global Financial Crisis of 2007-2009 Highlighted the Importance of Taking

question 80

True/False

The global financial crisis of 2007-2009 highlighted the importance of taking into consideration a bank's exposure to market risk that arise from changes in interest rates,security prices,and currency.

---

Definitions:

Open-end Mutual Funds

Investment funds that continually issue new shares and buy back existing shares from investors, without a fixed number of shares.

Guaranteed Rate

A fixed interest rate agreed upon in a financial contract, ensuring that the rate will not change for the contract's duration.

Net Asset Value

The value per share of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Closed-end Fund

A type of investment fund with a fixed number of shares that are traded on a stock exchange, unlike open-end funds that can issue or redeem shares at any time.