Examlex

Solved

Explain How a Short Hedge Could Be Used to Hedge

question 45

Essay

Explain how a short hedge could be used to hedge a Treasury portfolio against interest-rate risk.


Definitions:

Outlays

Expenses or expenditures made by a government, organization, or individual.

Stabilization Policies

Government strategies aimed at reducing fluctuations in the economy through monetary and fiscal policy measures to achieve low inflation, reduced unemployment, and sustainable growth.

Recession

A spell of economic retrenchment characterized by a reduction in manufacturing and trade activities, typically signified by two successive quarters of GDP decline.

Inflation

How quickly the average cost of goods and services goes up, resulting in a decrease in the ability to purchase.

Related Questions