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Commercial banks are typically more exposed to a. reinvestment risk because of their asset transformation function. b. foreign exchange risk because they disproportionately borrow domestically

Commercial banks are typically more exposed to

a. reinvestment risk because of their asset transformation function.

b. foreign exchange risk because they disproportionately borrow domestically to lend abroad .

c. market risk because a majority of bank assets is in the form of tradable securities.

d. refinancing risk because of their asset transformation function.

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