Question
If a future credit crunch is possible, a loan commitment may expose the FI to A. credit risk. B. interest rate risk. C. sovereign country
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If a future credit crunch is possible, a loan commitment may expose the FI to
A. credit risk.
B. interest rate risk.
C. sovereign country risk.
D. funding risk.
E. exchange rate risk.
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Interest rate risk is part of the loan commitment contingent risk because of the uncertainty of changes in interest rates before the borrower exercises his option to borrow.
A. True
B. False
If a future credit crunch is possible, a loan commitment may expose the FI to
| A. | credit risk. | |
| B. | interest rate risk. | |
| C. | sovereign country risk. | |
| D. | funding risk. | |
| E. | exchange rate risk. |
Interest rate risk is part of the loan commitment contingent risk because of the uncertainty of changes in interest rates before the borrower exercises his option to borrow.
| A. | True | |
| B. | False |
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
