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Question 1 1 pts In the traditional model, banks take short term deposits and other sources of funds and use them to fund longer term
Question 1 1 pts In the traditional model, banks take short term deposits and other sources of funds and use them to fund longer term loans to businesses and consumers. Banks typically hold these loans to maturity, and thus have an incentive to screen and monitor borrower activities even after a loan is made. However, the traditional banking model exposes the institution to potential liquidity, interest rate, and credit risk. True False
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