When the Financial Institution Is Hedging Interest-Rate Risk on Its

question 78

Multiple Choice

When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a ________.

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

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Definitions:

Abortion

The medical termination of a pregnancy before the fetus is capable of independent life.

Embryo

An embryo is an early stage of development in multicellular organisms, following fertilization and before becoming a fetus.

Genetic Engineering

The direct manipulation of an organism's genes using biotechnology to alter its characteristics in a specific way.

Prenatal Abnormalities

Any deviations from normal development in an embryo or fetus before birth.