Selling a FRA Has the Same Interest Rate Exposure As

question 119

Multiple Choice

Selling a FRA has the same interest rate exposure as:

• A) Opening a positive gap
• B) Going over-borrowed
• C) Making a forward-forward loan
• D) Taking a forward-forward deposit

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Definitions:

Elastic

An object or material capable of resuming its normal shape spontaneously after being stretched or compressed.

Wrinkle

Creases, folds, or ridges in the skin, typically resulting from aging, skin damage, or dehydration.

Middle Adulthood

A stage in human development typically ranging from about 40 to 65 years of age, characterized by increased personal and professional responsibilities and awareness of aging.

Crystallized Intelligence

One’s intellectual attainments, as shown, for example, by vocabulary and accumulated knowledge.