If a Financial Institution That Has More Rate-Sensitive Liabilities Than

question 61

Multiple Choice

If a financial institution that has more rate-sensitive liabilities than assets negotiates a rate-capped swap, its ____ payments will be capped, and it will ____ an up-front premium in exchange for the cap.

• A)outflow; receive
• B)outflow; pay
• C)inflow; pay
• D)inflow; receive

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Definitions:

Consumer Scam

Deceptive practices targeting consumers, designed to defraud or obtain financial advantage at the consumer's expense.

Criminal Act

An action that is punishable by law, often involving harm to society or other individuals.

Legislation

The process of making or enacting laws, typically by a legislative body, as well as the laws that are enacted.

Substantive Private Law

The set of legal principles that govern the rights and duties between individuals or organizations in non-criminal actions.