Which of the Following Statements Is Incorrect

question 7

Multiple Choice

Which of the following statements is incorrect?

• A)Interest rate swaps are sometimes used by financial institutions and other firms for speculative purposes.
• B)A primary reason for the popularity of interest rate swaps is the existence of market imperfections.
• C)Swaps are necessary for some financial institutions to obtain the maturities or rate sensitivities on funds that they desire.
• D)Most financial institutions that anticipate that interest rates will move in an unfavorable direction do not hedge their positions.

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Definitions:

Assertiveness

The quality of being self-assured and confidently expressing one's opinions and needs directly and respectfully.

Cooperation

Collaborative behavior or action taken by individuals or groups working towards a common goal or benefit, emphasizing teamwork and mutual support.

Manifest Conflict

A type of conflict that is openly expressed and observed, often involving direct confrontation between parties.

Supervisor-subordinate

The dynamic relationship between a manager or leader and their direct reports, characterized by guidance, oversight, and performance evaluation.