Investment securities portfolio help to offset credit risk exposure means: a. High-quality securities can be purchased and held to balance out the risk from loans. b. Their price can never go down. c. They will never default. d. They are protected against interest rates change. 13. Function(s) of a bank's security portfolio is (are) to: a. Increase tax exposure. b. Increase credit risk exposure. c. Provide a back-up source of liquidity. d. All of the above. 14. When interest rates fall: a. Longest-term bonds suffer the greatest risk. b. There is no effect on bond prices. c. Shortest-term bonds suffer the greatest gains. d. Longest-term bonds generate the greatest gains. 15. Money market instruments: a. Are noted for lower expected return. b. Have higher expected rate of return. c. Have lower capital gains potential. d. Both (a) and (c)