The Risk That Market Interest Rates May Change, Affecting the Value

question 35

Multiple Choice

The risk that market interest rates may change, affecting the value of a bank's assets and liabilities, is known as

• A)withdrawal risk.
• B)default risk.
• C)interest-rate risk.
• D)foreign-exchange risk.

---

Definitions:

Paget's Disease

A chronic disorder that can result in enlarged and misshapen bones due to abnormal bone destruction and regrowth.

Kyphosis

A spinal disorder causing an excessive outward curve of the spine, leading to a hunchback or slouching posture.

Scoliosis

A medical condition characterized by an abnormal lateral curvature of the spine, which can vary in severity.

Foramen Magnum

The large hole in the occipital bone that allows the brain to connect to the spinal cord.