11. Which of the following is(are) correct regarding pass-through securities? I. The investors of pass-through securities are exposed to prepayment risk. II. A bank can adjust the duration of its assets by issuing pass-through securities.' A. I only B. II only C. Both I and II D. Neither I nor II t 12. Which of the following is(are) reason(s) for a bank to sell its loans? I. To earn a fee from the loan sales.' II. To invest in other areas with a higher potential rate of return. t A. I only B. II only C. Both I and II- D. Neither I nor II- 13. Town Bank has interest-sensitive assets of $600 million and interest-sensitive liabilities of $500 million. Therefore, Town Bank has which is also called t A. asset-sensitive gap B. asset-sensitive gap C. liability-sensitive gap D. liability -sensitive gap positive gap negative gap positive gap negative gap- + 14. Which of the following is(are) correct? When a bank securitizes and sells some of its loans I. II. the bank's credit risk exposure will increase- the bank's liquidity risk will decrease- A. I only B. II only C. Both I and II- D. Neither I nor II- 15. Which of the following is(are) correct about the Exchange Fund in Hong Kong? I. The Exchange Fund aims to achieve a rate of return higher than that of Hang Seng Index. II. One of the purposes of the Exchange Fund is to support the value of Hong Kong dollar. A. I only: B. II only C. Both I and II- D. Neither I nor