It Is June

question 432

Multiple Choice

It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

• A) Sell 3x6
• B) Buy 3x6
• C) Sell 4x7
• D) Buy 4x7

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Definitions:

Chronic Exposure

refers to the prolonged exposure to a potentially harmful substance or environmental condition over an extended period, often leading to long-term health effects.

Tree Leaves

Broad, flat structures on trees that are primarily responsible for photosynthesis, the process of converting light energy into chemical energy.

Acid Rain

Precipitation containing high levels of sulfuric and nitric acids resulting from the emission of sulfur dioxide and nitrogen oxide into the atmosphere, harming ecosystems and structures.

U.S. President

The U.S. President is the head of state and government of the United States, serving as the chief executive of the federal government and commander-in-chief of the armed forces.