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How can liquidity and interest rate risk management objectives conflict in a DI? Where possible, provide examples. Are these conflicts resolvable? Explain.

 

How can liquidity and interest rate risk management objectives conflict in a DI? Where possible, provide examples. Are these conflicts resolvable? Explain.

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Solution Liquidity risk and interest rate risk are usually closely linked in a DI For example a DI t... blur-text-image

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