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Amy Farmer is thinking about investing in the Guthrie National Bank. She is examining certain ratios of the bank including the ratio of the book
Amy Farmer is thinking about investing in the Guthrie National Bank. She is examining certain ratios of the bank including
the ratio of the book value of the assets to the market value of the assets and the market value of the bonds held by the
bank to their recorded value. What type of risk is Amy attempting to measure with these ratios?
Credit risk
Liquidity risk
Market risk
Interest rate risk
Operational risk
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