Microhedging Is to Use Risk-Management Instruments Such as Futures and Options

question 8

True/False

Microhedging is to use risk-management instruments such as futures and options to reduce the interest rate risk of banks.

---

Definitions:

Suicide

The act of intentionally causing one's own death.

Prognosis

The likely course and outcome of a disease or ailment; a forecast about how a situation is likely to evolve.

Bargaining

A stage in the grief process identified by Elisabeth Kübler-Ross, involving negotiation often with a higher power in an attempt to avoid sorrow or pain.

Physician

A physician is a medical professional who is qualified to diagnose and treat illnesses, injuries, and other health conditions.