The Federal Financial Institutions Examination Council (FFIEC) has suggested that regulated institutions should engage in scenario planning and undertake stress tests to determine the impact of a series of possible changes in market interest rates. If the institution did a test for basis risk, they would be dealing with:A. instantaneous and significant changes in the levels of interest rates. B. changes in the relationship between key market interest rates. C. changes in the shape and slope of the yield curve. D. substantial changes in interest rates over time.
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