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Which of the risks could cause insolvency of the fi

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Reference no: EM133036658

Characterize each of the following according to the type of risk it primarily represents:

  1. I. Loan default
  2. II. Unexpected deposit withdrawals
  3. III. Losses on foreign currency holdings
  4. IV. Losses on standby letters of credit
  5. V. Reduction in earnings after an interest rate increase

Indicate which of the risks could cause insolvency of the FI.

Reference no: EM133036658

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