ACI
3I0-012 · Question #482
3I0-012 Question #482: Real Exam Question with Answer & Explanation
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Question
Which of the following statements does not explain why banks accept some amount of interest rate risk?
Options
- AIn their function as intermediaries, banks must necessarily accept some degree of interest rate risk.
- BBanks incur interest rate risk to increase income
- CBanks prefer c red it risk to market risk.
- DIf banks failed to take on interest rate risk they would not be able to meet the needs of their deposit
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