Match the correct type of bank risk with the appropriate associated statement. 1.The possibility that a borrower could make late, reduced, or no payments on their loans. 2.Bank management may make poor strategic decisions that result in lower profits for the bank. 3.Hackers could break into bank customer accounts. 4.Inability to access capital markets and higher borrowing costs could hurt the bank's ability for funding opportunities. 5.Changes in the yield curve could increase short-term rates and/or decrease long-term rates, resulting in a lower net interest margin for the bank. 6.General economic conditions can affect banks in the U.S. Liquidity Risk 7.Differences in the timing and drivers of rate changes reflecting the maturity and/or repricing of assets and liabilities could put the bank's earnings at risk.   Credit Risk Business Operations Risk Market risk Interstate Rate Risk Liquidity Risk

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Match the correct type of bank risk with the appropriate associated statement.

1.The possibility that a borrower could make late, reduced, or no payments on their loans.

2.Bank management may make poor strategic decisions that result in lower profits for the bank.

3.Hackers could break into bank customer accounts.

4.Inability to access capital markets and higher borrowing costs could hurt the bank's ability for funding opportunities.

5.Changes in the yield curve could increase short-term rates and/or decrease long-term rates, resulting in a lower net interest margin for the bank.

6.General economic conditions can affect banks in the U.S.

Liquidity Risk

7.Differences in the timing and drivers of rate changes reflecting the maturity and/or repricing of assets and liabilities could put the bank's earnings at risk.

 

Credit Risk

Business Operations Risk

Market risk

Interstate Rate Risk

Liquidity Risk

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