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a. How have savings institutions altered their deposit and liability structures to reduce their interest rate risk exposure in recent years? Would you say they

a. How have savings institutions altered their deposit and liability structures to reduce their interest rate risk exposure in recent years? Would you say they have totally eliminated their interest rate risk? Why or why not? Rationalize your stance. (3 Marks) b. How does adverse selection relate to the insurance? What is the adverse selection risk for insurers marketing life annuities? (2 Marks)

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