Which of the Following Transactions Would Have the Effect of Lengthening

question 471

Multiple Choice

Which of the following transactions would have the effect of lengthening the average duration of assets in the banking book?

• A) buying futures contracts on 30-year German Government bonds
• B) selling futures contracts on 30-year German Government bonds
• C) buying put options on 30-year German Government bonds
• D) buying a 3x6 forward rate agreement

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Definitions:

Reaction Measures

Evaluation tools used to gauge immediate responses or feedback to training or learning activities.

Literature

Written works, especially those considered of superior or lasting artistic merit, encompassing fiction, non-fiction, poetry, and other forms.

Summative Evaluation

An assessment conducted at the end of a program or course to determine its overall effectiveness or achievements.

Causal Evaluation

An assessment method that aims to determine the cause-and-effect relationship between two variables, often used to measure the impact of interventions or programs.