Conyers Bank Holds U

question 127

Multiple Choice

Conyers Bank holds U.S.Treasury bonds with a book value of $30 million.However,the U.S.Treasury bonds currently are worth $28,387,500.

How can the portfolio manager use futures markets to protect against the risk exposure of rising interest rates?

• A)Buy interest rate futures.
• B)Sell currency futures.
• C)Buy currency futures.
• D)Sell interest rate futures.

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Definitions:

Social Interest

A concept introduced by Alfred Adler, referring to an individual's inclination toward social cooperation and community contribution.

Order Of Birth

The sequence in which children are born into a family, which can influence their personality, behavior, and relationships.

Competitive

Having a strong desire to be more successful than others, often characterized by pursuits where winning is the primary objective.

Ambitious

Having a strong desire for success or achievement, often requiring determination and hard work.