What is interest rate risk?

a) The risk that exchange rate changes can affect the value of an FIs assets and liabilities denominated in nondomestic currencies.

b)The risk that a sudden surge in liability withdrawals may require an FI to liquidate assets in a very short period of time and at less than fair market prices.

c) The risk that promised cash flows from loans and securities held by FIs may not be paid in full

d) The risk incurred by an FI when the maturities of its assets and liabilities are mismatched