18. What can be the cause(s) of market risk in a bank's portfolio? A. Interest rate risk B. Significant risk C. Excessive collateral D. Both A and C E. None of the above 19. 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 20. 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 21. Banks can resolve cash deficiencies by a creating additional liabilities b. buying more fixed assets c. buying back common stock d. increasing dividend payouts o. A or B 22. As the secondary market for loans has become active, banks are more ahle to satisfy their liquidity needs with a proportion of loans while achieving profitability. I a higher, higher b. lower, lower c higher, lower d. lower, higher none of the above 23. Which of the following is a method that a bank can use to reduce its credit risk? a diversifying its loans across industries b. focusing on credit card loans c. focusing on consumer loans d. selling its holdings of Treasury securities c. none of the above