If a Bank Has Assets and Liabilities in Dollars and Euros

question 73

Multiple Choice

If a bank has assets and liabilities in dollars and euros, its exposure to interest rate risk can best be minimized if the

• A) currency mix of assets is similar to that of liabilities.
• B) overall rate sensitivity of assets and liabilities is similar.
• C) rate sensitivity of assets and liabilities is matched for each currency.
• D) A and B

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Definitions:

Twisting Torso

A skyscraper in Malmö, Sweden, designed by Spanish architect Santiago Calatrava, characterized by its unique twisting, sculptural form inspired by the human body in motion.

Archaic

The artistic style of 600–480 BC in Greece, characterized in part by the use of the composite view for painted and relief figures and of Egyptian stances for statues.

Classical

Pertaining to ancient Greek or Roman art, architecture, and culture, characterized by harmony, proportion, and adherence to established standards of beauty.

Nike of Samothrace

An ancient Greek sculpture representing the goddess Nike, celebrated for its portrayal of movement and considered a masterpiece of Hellenistic art.