Which of the Following Statements Most Appropriately Responds to the Critique

question 63

Multiple Choice

Which of the following statements most appropriately responds to the critique that duration matching is costly and time consuming?

• A)The critique is valid; however, the speed has been eased and transaction costs of balance sheet restructuring have been lowered due to growth of purchased funds, asset securitisation and loan sales markets.
• B)The critique is valid and FIs should spend funds in order to develop more efficient interest rate risk management tools.
• C)The critique is valid, particularly because it is not possible for managers to get the same results of direct duration matching by taking positions in derivatives markets.
• D)None of the listed options are correct.

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Definitions:

Laboratory Test

A laboratory test is an analysis conducted in a controlled environment to examine biological samples, chemicals, or substances to assess health or diagnose disease.

Normal Results

Test outcomes that fall within an established range of values, indicating no significant deviations or abnormalities.

Snakebite

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Automated Voice

Refers to synthesized speech generated by computers or other devices, often used in telephone systems, virtual assistants, and accessibility tools.