As Part of Risk Management When a Company Changes the Timing

question 71

Multiple Choice

As part of risk management when a company changes the timing of its cash outflows to minimise the effect of interest rate changes,this technique is called:

• A) an external technique of interest rate management.
• B) an internal technique of interest rate management.
• C) a repricing gap technique.
• D) a duration technique.

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Definitions:

Maturity

The state of being fully developed physically or mentally, often associated with adulthood and the ability to respond to the environment in an appropriate manner.

Muscular-anal Stage

In psychoanalytic theory, the muscular-anal stage is part of the psychosexual development stages, focusing on toilet training and the child's ability to control bodily functions.

Adulthood Stage

A period in human development characterized by fully developed physical growth, maturity, and the assumption of adult roles and responsibilities.

Generativity Versus Isolation

A stage in Erik Erikson's theory of psychosocial development where middle-aged adults face the challenge of contributing to the next generation or feeling disconnected and isolated.