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

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Definitions:

Corroboration

Confirmation or support of a statement, theory, or finding, often with additional evidence or testimony.

Comparable Worth

A principle stating that jobs of equal value to an organization should receive equal pay, even if they are quite different in nature.

United States

A country located in North America, comprised of 50 states, a federal district, five major self-governing territories, and various possessions.

Nations

Large groups of people united by common descent, history, culture, or language, inhabiting a particular country or territory.