A Financial Institution That Wishes to Reduce Its Exposure to the Possibility

question 64

Multiple Choice

A financial institution that wishes to reduce its exposure to the possibility of declining interest rates might use

• A)a long hedge.
• B)a short hedge.
• C)a day hedge.
• D)index arbitrage.

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Definitions:

Lymphatic Organs

Organs, including the lymph nodes, spleen, and thymus, that are part of the immune system, helping to filter pathogens and produce white blood cells.

Lymph Nodes

Small, bean-shaped structures that are part of the lymphatic system, helping the body fight infections and other diseases.

Innate Physical Barrier

Natural barriers formed by the body’s anatomy, such as the skin and mucosal surfaces, that help prevent the entry of pathogens.

Washing Action

The process of cleansing or removing dirt, contaminants, or impurities from objects or surfaces, typically involving agitation and detergents or solvents.