What Kind of Interest Rate Swap (Of Liabilities) Would an FI

question 5

Multiple Choice

What kind of interest rate swap (of liabilities) would an FI with a positive funding gap utilize to hedge interest rate risk exposure?

• A)Swap floating-rate payments for fixed-rate payments.
• B)Swap floating-rate receipts for fixed-rate payments.
• C)Swap fixed-rate receipts for floating-rate receipts.
• D)Swap floating-rate receipts for fixed-rate receipts.
• E)Swap floating-rate payments for fixed-rate receipts.

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Definitions:

Data File

A file that contains data, often structured in a specific format, that can be used or processed by a computer program.

C Program

A program written in the C programming language, which is a general-purpose, procedural computer programming language.

External Files

Refer to files that are created, stored, and accessed outside of the executable program's memory space, often used for data storage, configuration, or logging.

Internal Name

A name used within a program's code to identify a variable, function, or other element, not visible to the end user.