A Bank Wants to Use STIR Futures for Establishing a Macro

question 426

Multiple Choice

A bank wants to use STIR futures for establishing a macro hedge for the asset portfolio. Which of the following statements is correct?

• A) It is reasonable for the bank to purchase futures contracts if they expect interest rates to rise.
• B) It is reasonable for the bank to take a long position in anticipation of rising rates.
• C) Losses (or gains) in the value of the cash position can be largely offset by gains (or losses) in the value of the futures position
• D) It is reasonable for the bank to sell futures contracts if it expects interest rates to fall

Understand the mechanisms that lead to group polarization including social comparison and normative influence.

Recognize the differences in decision-making processes between groups and individuals, including tendencies towards risk-taking or conservatism.

Comprehend the impact of group dynamics on decision-making efficacy, including the effects of shared mental models and groupthink.

Identify the phases and best practices in group decision-making processes.

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Definitions:

Gender Stereotypes

Overgeneralized beliefs about the characteristics, attributes, and behaviors of males or females based on their gender.

Social Structure

A pattern of organized relationships among groups of people within a society that shapes behaviors and interactions.

Gender Role Socialization

Gender Role Socialization is the process by which individuals learn and adopt the behaviors, values, and norms associated with their gender, as prescribed by societal expectations and cultural norms.

Patriarchy

A system of society where males predominantly possess the key power, steering political governance, ethical leadership, societal advantages, and ownership of assets.