Describe the risk exposure(s) in the following financial transactions.

Identify which transactions are influenced by interest rates or interest income. (CAUTION: Some can be influenced by both!)

Risk Types: Interest rate risk, Credit risk, Technology risk, Foreign exchange rate risk, Country, or sovereign risk

Financial Transactions	Risk Type	Describe and justify risk type	Interest Rate or Interest Income?
A bank finances a 10 million, 6 year fixed rate commercial loan by selling one year certificate of deposit
A insurance company invests its policy premiums in a long term long-term municipal bond portfolio
A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur.
A Japanese bank acquires an Austrian bank to facilitate clearing operations.
A bond dealer uses his own equity to buy Mexican debt on the less developed country (LDC) bond market.
A securities firm sells a package of mortgage loans as mortgage-backed securities.
Describe the features of the method you would choose to measure the interest risks identified.