question archive Commercial banks are typically more exposed to a

Commercial banks are typically more exposed to a

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Commercial banks are typically more exposed to

a. reinvestment risk because of their asset transformation function.

b. foreign exchange risk because they disproportionately borrow domestically to lend abroad .

c. market risk because a majority of bank assets is in the form of tradable securities.

d. refinancing risk because of their asset transformation function.

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