Long-term loans at adjustable interest rates

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Reference no: EM131868229

1. A bank that makes most of its long-term loans at adjustable interest rates is:

a. reducing credit risk and increasing interest-rate risk.

b. increasing both interest-rate and credit risk.

c. reducing both interest rate and credit risk.

d. increasing credit risk and reducing interest rate risk.

2. Discuss when Delta Air Lines should recognize the revenue from ticket sales to properly match revenues and expenses.

Reference no: EM131868229

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