What sort of risk are you connected about and how can you


Your bank has $153 million in loan commitments which are now being drawn upon. You aren't sure, but you are beginning to think that the bank may have some problems now. What sort of risk are you connected about, and how can you remediate it?

a. Underlying risk; tighten credit requirements

b. Liquidity risk; enter the repo market

c. Solvency risk; sell assets or sell a secondary stock issue

d. Interest rate risk; arrange an interest swape

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