1. How banks evaluate credit risk Mr. Nag applies for a loan at North bank Which of the following most accurately explains why the bank would require Mr. Nag to provide information about occupation over the past 5 years, credit reports, and contact information for current and past business partners of Mr. Zambetti? The bank needs to assess Mr. Nag's character to evaluate his credit risk. The bank applies duration analysis to assess Mr. Nag's credit risk. The bank applies gap analysis to assess Mr. Nag's credit risk. O The bank needs to assess Mr. Nag's liabilities to evaluate his interest rate risk. 2. Interest rate risk Which of the following are accurate statements about interest rate risk? Check all that apply Changes in interest rates affect bank assets. Banks must manage interest rate risk because it affects banks' interest income. Changes in interest rates affect only bank liabilities and have no effect on assets. It arises when the banking system was heavily regulated