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NEW QUESTION: 1
Which one of the following four statements regarding bank's exposure to credit and default risk is
INCORRECT?
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way that an equity investment can.
B. In debt management, the goal is to minimize the effect of any defaults.
C. Default risk cannot be hedged away fully, and it will always exist for the holder of the credit or for the
person insuring against the credit or default event.
D. The more the bank diversifies its credit portfolio, the better spread its credit risks become.
Answer: A
NEW QUESTION: 2
What processes do you perform as part of liquidity management? There are 3 correct answers to this question.
A. Review credit standing
B. Forecast balances
C. Post credit memos
D. Perform planning
E. Monitor cash flow
Answer: B,D,E
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B. Option C
C. Option A
D. Option D
Answer: A
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