If a Corporate Treasurer Wants to Hedge Against Interest Rate

question 75

True/False

If a corporate treasurer wants to hedge against interest rate increases on a new bond issue to be floated, he can sell short in the futures market.

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Definitions:

Personality Disturbances

Patterns of behavior or thinking that deviate significantly from the norms of the individual's culture, causing distress or impaired functioning.

Inferiority

A feeling of lower status or self-worth compared to others, often discussed in the context of social comparison and psychological theories.

Alfred Adler

An Austrian medical doctor and psychotherapist, known for founding the school of individual psychology which emphasizes the importance of the feeling of inferiority in the development of personality.

Unconscious Mind

Part of the mind that contains desires, memories, and knowledge that are beyond conscious awareness but still influence behavior.