The risk that increased market interest rates will cause a decline in the value of an investment bank's holdings of long-term securities is known as
A) credit risk.
B) interest-rate risk.
C) currency risk.
D) security risk.
B
You might also like to view...
The concepts of mutual interdependence and game theory illustrate the fact that firms competing in oligopoly
A) consider the actions of the rivals before changing the price of their product. B) ignore the actions of their rivals when considering price changes. C) engage in frequent price changes. D) never change prices. E) will mutually determine the combined best outcome for all players.
A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.
In a closed economy, national saving
A) sometimes equals investment. B) always equals investment. C) is always less than investment. D) is always more than investment. E) is never equal to investment.
A job candidate refusing to take a drug test for a potential employer is an example of:
A. screening. B. building a reputation. C. signaling. D. principles-based behavior.