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Banks are typically exposed to interest rate risk in both their trading book and banking book. Define banks' trading book and banking book, and explain

"Banks are typically exposed to interest rate risk in both their trading book and banking book."

Define banks' trading book and banking book, and explain the above statement with specific examples.

 

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ANSWER Answer Banks are exposed to many risks interest rate risk is one of them Interest rate risk o... blur-text-image

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