Explain the type(s) of risk Lafayette Bank takes in the following examples.
a. Lafayette Bank extends a one-year loan to Joe Johnson to purchase a new washer and dryer for his home.
b. Lafayette Bank extends a 30-year, fixed-interest-rate loan to Joe Johnson for the purchase of a new home.
c. Lafayette Bank extends a 30-year, floating-interest-rate loan to Joe Johnson for the purchase of a new home.
d. Lafayette Bank purchases $100,000 in 10-year government bonds.
e. Lafayette Bank purchases $200,000 in 10-year municipal bonds.