1-Describe risk exposures by filling out the Financial Transaction Risks Table.

2-Describe features you would choose to measure interest risks and identify which transactions are influenced by interest rates or income. Some are influenced by both.

Financial Transactions	Risk Type	Describe and justify risk type	Interest Rate or Interest Income?
A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year certificate of deposit.
An insurance company invests its policy premiums in a long-term municipal bond portfolio.
A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur.
A Japanese bank acquires an Austrian bank to facilitate clearing operations.
A bond dealer uses his own equity to buy Mexican debt on the less developed country (LDC) bond market.
A securities firm sells a package of mortgage loans as mortgage-backed securities.
Describe the features of the method you would choose to measure the interest risks identified.