Main Question

During last nights "interest rate" meeting here are some points we felt would help us to understand the overall picture that would help us to determine what questions we could ask.

Our main question that we thought should be our main focus is:
HOW DO BANKS MINIMIZE RISK TO MAXIMIZE PROFIT?

Here were some other points-
- What is interest rate risk?
- How are interest rates set by the Fed?
- Why/what causes interest rate change?
- How do banks determine rates?
- How do banks make money?
- What affects interest rates? (economical)
- How do interest rates affect banks?
- How do banks adjust to rate change?

Obviously these ?'s are geared towards interest, but some could be altered for FX rate risk....