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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Definitions:

Salience

The quality of being particularly noticeable or important; the state of being prominent in the mind or in a situation.

Homogeneity

The quality or state of being all the same or all of the same kind, often used to describe a population or group with minimal diversity.

Nutritional Needs

The essential nutrients required by the body for growth, maintenance, and proper functioning, including vitamins, minerals, carbohydrates, proteins, and fats.

Dietary Requirements

Specific nutritional or food needs an individual might have, often due to health issues, allergies, or personal and ethical beliefs.