When a Change in Interest Rate Affects the Value of Assets,liabilities

question 1

Multiple Choice

When a change in interest rate affects the value of assets,liabilities and future cash flows,this is called _____ interest rate risk.

• A) basis
• B) direct
• C) indirect
• D) reinvestment

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Definitions:

Distribution

The act of presenting a product or service for utilization or consumption by a consumer or business entity.

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community or a significant number of people.

Health

The state of being free from illness or injury and includes physical, mental, and social well-being.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.