Question 3 a. Explain how technological improvements can increase an FI's interest income an reduce interest expense. Give an example for each situation b. What does it mean when the central bank acts a "settlement agent" and how does this minimise settlement risk for a central bank? c. What is the primary disadvantage of the back-simulation approach in measuring market risk? What effect does the inclusion of more observations have as a remedy for this disadvantage? d. Why is the measurement of market risk important to the manager of a financial institution