Which of the Following Transactions Would Have the Effect of Shortening

question 226

Multiple Choice

Which of the following transactions would have the effect of shortening the average duration of liabilities in the banking book?

• A) selling holdings of 30-year German Government bonds
• B) replacing retail savings accounts with 3-month borrowings under repo
• C) selling futures contracts on 30-year German Government bonds
• D) placing a 20-year covered bond in the market

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Definitions:

Trait Examination

The analysis or assessment of enduring characteristics that define an individual's personality.

Central Traits

Key personality characteristics that determine how individuals behave in most situations and how they are perceived by others.

Nomothetic Approach

A scientific approach that seeks general laws and principles through the study of groups of individuals.

Secondary Traits

Personality traits that are less central to an individual's identity and more situational or context-dependent.