流动性风险

问题如下：

In the Northern Rock case one of the lessons is that there is a tradeoff between funding liquidity and interest rate risk: When funding liabilities have shorter duration than loan assets, the bank is exposed to ____ interest rate risk and ____ funding liquidity risk.

选项：

lower, higher

lower, lower

higher, higher

higher, lower

解释：

Ais correct.

Banks must consider the significant tradeoff between a short-term funding strategy with low rates but frequent rollovers (and thus more liquidity risk) and a long-term funding strategy with higher rates (and thus higher costs) but less frequent rollovers.