Which of the Following Could Be Appropriately Used to Reduce

question 59

Multiple Choice

Which of the following could be appropriately used to reduce the $Gap for a bank that specializes in mortgage lending?
I. Issue more ARMs
II. Securitize and sell mortgages
III. Buy futures on long term Treasury bonds
IV. Enter into a swap to pay fixed and receive a variable rate of interest

• A) I and II
• B) I, II and III
• C) I, II and IV
• D) II, III and IV
• E) I, II, III and IV

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Definitions:

Soil

The top layer of the Earth's surface, composed of mineral particles, organic matter, water, and air, which serves as a medium for plant growth.

Nutrients

Substances obtained from food that are vital for growth, maintenance of the body, and energy supply.

Estuaries

Coastal water bodies where freshwater from rivers and streams mixes with saltwater from the ocean, creating an ecologically rich environment.

Salinity

The concentration of dissolved salts in water, affecting the density, biodiversity, and chemical behavior of aquatic environments.