Matched Funding by Banks

question 26

Multiple Choice

Matched funding by banks:

• A)is a form of Macro hedging.
• B)requires using instruments of risk management,such as financial futures,options on financial futures and interest rate swaps to reduce the interest rate risk of the firm's entire balance sheet.
• C)happens if for instance fixed-rate loans are funded with fixed rate deposits or fixed rate borrowed funds of the same maturity.
• D)is achieved when banks borrows short and lend long.

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Definitions:

John Marshall Harlan

An Associate Justice of the Supreme Court of the United States known for his dissenting opinions, particularly in cases related to civil liberties and racial segregation.

Status of Blacks

Refers to the social, economic, and political standings and rights of Black people, historically and in contemporary society.

Subservient

Describes someone who is excessively willing to obey others; subordinate in capacity or role.