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Canvas Question 25 1. Characterize the risk exposure(s) of the following Fl transactions by choosing one or more of the following: (6 points) A. Credit

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Canvas Question 25 1. Characterize the risk exposure(s) of the following Fl transactions by choosing one or more of the following: (6 points) A. Credit risk B. Interest rate risk C. Off-balance sheet risk D. Foreign exchange risk E. Country/sovereign risk F. Technology risk 1. A bank finances a $10 million, six-year, fixed-rate commercial loan by selling one year certificates of deposit. 2. An insurance company invests its policy premiums in a long-term municipal bond portfolio 3. A French bank sells two-year fixed rate notes to finance a two-year fixed rate loan to a British entrepreneur. 4. A Japanese bank acquires an Austrian bank to facilitate clearing operations. 5. A mutual fund completely hedges its interest rate risk exposure using forward contingent contracts 6. A bond dealers his own equity to buy Mexican debt on the less developed countries (LDCs) bond market 7. A securities firm sells a package of mortgage loans as mortgage-backed securities

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