Which of the Following Is NOT an Internal Method of Interest

question 48

Multiple Choice

Which of the following is NOT an internal method of interest rate risk management?

• A) Changing the timing of cash flows
• B) Changing the structure of the balance sheet to minimise exposure
• C) Using forward rate agreements
• D) Imposing a financial penalty for early repayment of a loan

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Definitions:

Pounds

A unit of mass in the imperial system, symbolized as lb.

Labor Quantity Variance

The difference between the actual hours worked and the standard hours planned, multiplied by the standard labor rate.

Worker Fatigue

Worker fatigue refers to the physical and mental exhaustion that can decrease employee performance, potentially leading to mistakes and accidents.

Misallocation

The inefficient distribution or use of resources in a manner that does not maximize efficiency or value.