A Thrift Institution Can Reduce Interest Rate Risk by

question 8

Multiple Choice

A thrift institution can reduce interest rate risk by

• A) making more mortgages financed by six month CD's.
• B) performing more mortgage banking activities.
• C) buying Treasury bond futures to reduce the thrift's negative maturity GAP.
• D) making more thirty-year mortgages.

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Definitions:

Reasonable Reliance

The act of depending on the promise, statement, or action of another on the grounds that it is sensible and justifiable to do so under the circumstances.

Employment Policy Manual

A document provided by employers to employees, outlining workplace rules, policies, and expectations.

Promissory Estoppel

Promissory estoppel is a legal principle that allows a party to recover on a promise made without a formal contract, provided they have relied on that promise to their detriment.

Implied Contract

An agreement created by actions of the parties involved, not written or spoken, but inferred from their conduct.