When a Financial Institution Hedges the Interest-Rate Risk for a Specific

question 34

Multiple Choice

When a financial institution hedges the interest-rate risk for a specific asset,the hedge is called a ________.

• A) macro hedge
• B) micro hedge
• C) cross hedge
• D) futures hedge

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Definitions:

Medical Expense Deduction

A tax deduction available for individuals who have incurred significant healthcare costs relative to their income.

Dependent

Someone who relies on another, particularly for financial support, often a child or other family member as defined for tax purposes.

Medical Services

Professional services provided by doctors, nurses, or any healthcare providers, typically aimed at diagnosing, treating, or preventing illness.

Itemized Deduction

Specific expenses allowed by the IRS that can be subtracted from AGI to decrease taxable income.