26) The risk that either party in a financial transaction fails to meet its obligation is called: a A) gap risk B) counterparty risk C) currency risk D) leverage 27) Forward transactions originated in the market for: A) agricultural and other commodities B) U.S. Treasury securities C) common stocks D) commercial paper 28) The era of bank panics in the United States effectively ended: A) with the establishment of the Federal Reserve System in 1913 B) when dollars became convertible to gold C) when hedging of currencies became popular D) with the creation of the FDIC in 1934 29) Commercial banks use interest rate swaps mainly to: A) increase return on assets B) decrease default risk C) reduce gap risk D) borrow reserves 30) Trends in the U.S. banking system since the financial crisis of 2008 include: A) reduced leverage B) increased excess reserves C) higher credit standards for borrowers D) all of the above