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How diversification affects an FIs credit risk exposure? Why an FI might face a sudden liquidity crisis? What circumstances might lead an FI to liquidate

How diversification affects an FIs credit risk exposure?

Why an FI might face a sudden liquidity crisis?

What circumstances might lead an FI to liquidate assets at fire-sale prices?

What refinancing risk is?

Why a rise in the level of interest rates adversely affects the market value of both assets and liabilities?

What the concept of maturity matching means?

what market risk is? what conditions have led to an increase of market risk for FIs?

Why the returns on domestic and foreign portfolio investments are not, in general, perfectly correlated?

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