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Question
The Terrell State Bank is a small bank located in Guyman, Oklahoma. All of its loans are agriculture and small business loans in Guyman. It wants to buy a municipal bond from the state of South Carolina. What type of risk is it likely trying to reduce with this purchase?
A. Credit risk
B. Interest-rate risk
C. Business risk
D. Call risk
E. Prepayment risk
Answer
This answer is hidden. It contains 1 characters.
Related questions
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A. Loan and lease loss allowance is added to gross loans.
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C. Investment income is added to gross interest received.
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