When the Financial Institution Is Hedging Interest-Rate Risk on Its

question 78

Multiple Choice

When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a ________.

• A) macro hedge
• B) micro hedge
• C) cross hedge
• D) futures hedge

---

Definitions:

Frieda Fromm-Reichmann

A psychoanalyst known for her innovative treatment of schizophrenia and exploration of the therapeutic relationship in psychotherapy.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, fundamental to building relationships and societal structures.

Avatar Therapy

A form of treatment where patients interact with digital representations (avatars) of their hallucinations to reduce their power and frequency.

Psychotherapy

Psychotherapy is a type of therapy where psychological methods are used to help a person change behavior and overcome problems in desired ways.