How does the emergence of interest-rate risk

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How does the emergence of interest-rate risk help explain financial? innovation?

A. It decreases the demand for new financial innovation because these products are often risky.

B. It allows financial institutions to avoid the limits set on the interest rate paid on time deposits.

C. It increases the demand for financial products and services that could reduce that risk.

D. It increases profits for financial institutions and thus increases the supply of new financial instruments.

Reference no: EM131009779

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