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QUESTION
3 . Interest rate risk Which of the following are accurate statements about interest rate risk ?
3 . Interest rate risk
Which of the following are accurate statements about interest rate risk? Check all that apply.
It arises when the banking system was heavily regulated.
Banks must manage interest rate risk because it affects banks' expenses.
Changes in interest rates affect bank liabilities.
Although interest rate risk does not affect banks' interest income, it affects their interest expenses.
