After Conducting a Rate-Sensitive Analysis,a Bank Finds Itself with the Following

question 34

Multiple Choice

After conducting a rate-sensitive analysis,a bank finds itself with the following amounts of rate-sensitive assets and liabilities (RSAs and RSL) and fixed-rate assets and liabilities (FRAs and FRLs) ; the rate of return and cost rates on the accounts are also given: If the bank wishes to set up a swap to totally hedge the interest rate risk,the bank should

• A)pay a variable rate of interest and receive a fixed rate of interest.
• B)pay a fixed rate of interest and receive a variable rate of interest.
• C)pay a variable rate of interest and receive a variable rate of interest.
• D)pay a fixed rate of interest and receive a fixed rate of interest.

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Definitions:

Job Observation

The method of evaluating a job by watching and noting the tasks being performed, often used for training, performance assessment, or job design.

Family-Managed Businesses

Businesses that are owned, controlled, and operated by members of one or several families, often passed down through generations.

Nonfamily Professionals

Individuals who are employed in family-owned businesses but are not members of the owning family, bringing external expertise and perspectives.

Employee Referrals

A recruiting strategy where current employees recommend potential candidates for open positions within the organization.