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Question 6 10 pts Basis risk is the risk that the prices or value of the underlying spot and the derivatives instrument used to hedge

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Question 6 10 pts Basis risk is the risk that the prices or value of the underlying spot and the derivatives instrument used to hedge do not move predictably relative to one another. O true & false 10 pts Question 7 Advantages of loan sales and securitization typically include all but which one of the following? O Reduction in credit risk O Reduction in interest rate risk Increase in liquidity of the balance sheet Reduction in regulatory tax burden O Increase in net interest income

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