Question 30 Which of the following is true? The risk that a financial institution may not have enough capital to offset a sudden decline in the value of its assets is called liquidity risk. Breakdowns of clearing and settlement systems are examples of Technology risk. A bank that has made floating rate loans funded by longer maturity deposits is at risk from falling interest rates Rising interest rates decrease the value of fixed income assets and increase the value of fixed income liabilities. Loan charge offs do not lead to insolvency risk because when loans are written off both loans and liabilities are reduced