Futures Contracts Are the Primary Security That Insurance Companies and Banks

question 34

True/False

Futures contracts are the primary security that insurance companies and banks use to hedge interest rate risk prior to originating mortgages.

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Definitions:

Culprit

The person or thing responsible for a fault or problem.

Knights

Historically, a warrior mounted on horseback or a person granted an honorary title of knighthood by a monarch or other political leader for service to the country or Church.

Capturing Forts

The military action of taking control of fortified enemy positions.

Different Allergen

A substance distinct from others that can induce an allergic reaction in certain individuals.