11. How can a bank be subject to exchange rate risk?

A. If the bank makes loans denominated in a foreign currency B. If the bank makes floating-rate loans C. If the bank accepts deposits denominated in a foreign currency D. If the bank makes loans for subprime mortgages E. Both A and C

12. What is another type of risk that often accompanies exchange rate risk?

A. Collateral risk B. Corresponding risk C. Settlement risk D. Legal risk E. None of the above

14. Bank HonkeyTonk has assets of $2 billion, liabilities of $1.8 billion, deposits of $1.2 billion, interest revenue of $150 million, off-balance sheet commitments of $800 million, and interest expense of $60 million. What is HonkeyTonks net interest margin?

A. 80% B. 7.5% C. 4.5% D. 66.67% E. None of the above