Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of by adopting a strategy that will
a. rising interest rates; diversify its loans
b. rising interest rates; provide loans to a variety of customers
c. an increased reserve requirement; provide loans to a variety of customers
d. dan asset-liability time mismatch; diversify its loans

The correct answer is "D. an asset-liability time mismatch; diversify its loans."

Explanation: Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of "an asset-liability time mismatch" by adopting a strategy that will diversify its loans.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; planning;