A Financial Institution Confronted with a Negative Interest-Sensitive Gap Could

question 124

True/False

A financial institution confronted with a negative interest-sensitive gap could avoid unacceptable losses from rising interest rates by covering the gap with a short hedge.

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Definitions:

Suicidal Behavior

Involves actions taken towards self-harm with the intention to end one's life.

Depressed

A mood disorder marked by significant and persistent feelings of sadness and hopelessness.

Electroconvulsive Therapy (ECT)

A medical treatment most commonly used for severe depression, involving electrical stimulation of the brain under anesthesia.

Severe Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life, more intense than general depression.