An Off-Balance-Sheet Forward Position Is Used to Hedge the FI's

question 33

True/False

An off-balance-sheet forward position is used to hedge the FI's on-balance-sheet risk exposure.

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Definitions:

Avoidance Behavior

Actions taken to prevent or avoid the occurrence of an unpleasant stimulus or scenario.

Delay

A period of time before an event or action takes place.

Aversive Event

An unpleasant or harmful event or stimulus that an organism seeks to avoid or escape.

Avoidance Response

A behavior aimed at preventing an unpleasant or harmful event before it occurs.