If a fiNancial Institution Has Equated the Dollar Effects of Interest

question 49

Multiple Choice

If a financial institution has equated the dollar effects of interest rate risk on the assets with the dollar effects on the liabilities, it has engaged in:

• A)a long hedge.
• B)a short hedge.
• C)a protected swap.
• D)immunizing interest rate risk.
• E)None of the above.

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