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Read through the following institution transactions. As you do so, characterize the risk exposure(s) of each one by matching the transaction with one or more of the risks listed A-F at the end.

1. A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year certificates of deposit.
2. An insurance company invests its policy premiums in a long-term municipal bond portfolio.
3. A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to British entrepreneur.
4. A Japanese bank acquires an Austrian bank to facilitate clearing operations.
5. A mutual fund completely hedges its interest rate risk exposure using forward contingent contracts.
6. A bond dealer uses his own equity to buy Mexican debt on the less developed countries (LDC) bond market.
7. A securities firm sells a package of mortgage loans as mortgage-backed securities.
   1. Credit risk
   2. Interest rate risk
   3. Off-balance-sheet risk
   4. Foreign exchange risk
   5. Country/sovereign risk
   6. Technology risk