If a Bank Sells Interest Rate Futures, It ____ the Potential

question 61

Multiple Choice

If a bank sells interest rate futures, it ____ the potential adverse effect of rising interest rates and ____ the potential favorable effect of declining interest rates on its interest expenses.

• A)reduces; reduces
• B)increases; increases
• C)reduces; increases
• D)increases; reduces

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Definitions:

Cooperate

This action involves working together with others towards a common goal or objective, typically requiring communication and coordination.

Personality Trait

Enduring characteristics or dispositions that influence an individual's behavior across different situations.

Conscientiousness

A personality trait characterized by meticulousness, responsibility, and a structured approach to tasks, often associated with high levels of success and achievement in various domains.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative disposition, often associated with higher levels of social harmony.