Which of the Following Contingent Risks Are Most Likely to Be

question 60

Multiple Choice

Which of the following contingent risks are most likely to be created if a bank provides a loan commitment?

• A)interest rate risk and credit risk
• B)draw-down risk
• C)aggregate funding risk
• D)All of the listed options are correct.

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Definitions:

Municipal Water

Water that is treated and supplied by a municipal corporation for public use in cities and towns.

Spring Water

Water that flows naturally to the surface from a subsurface aquifer.

Bottled Water

Packaged drinking water sold in plastic or glass bottles; its quality can vary depending on the source and treatment methods.

Condensation

The process by which a gas transforms into a liquid, often observed as water vapor in the air turning into liquid water droplets on cool surfaces.