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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