5. Banks face credit risk, which they seek to reduce by screening and monitoring borrowers and by...
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5. Banks face credit risk, which they seek to reduce by screening and monitoring borrowers and by demanding collateral. They also face interest rate risk, which they limit through loan sales, floating interest rates, and the trading of derivatives. LOP8
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Macroeconomics And The Financial System
ISBN: 9781429253673
1st Edition
Authors: N. Gregory Mankiw, Laurence Ball
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