1. Banks are heavily regulated because they safeguard individual savings and because they are inherently fragile the primary risk of a banks fragility is known as:
   1. Interest rate risk mismatch in maturities of a banks asset vs. liabilities
   2. Credit risk default risk of borrowers on their loans
   3. Liquidity risk risk of sudden depositor withdrawals vs. long-dated bank assets
   4. Trading risk trading losses in the banks own account