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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