Selective Hedging Occurs by Reducing the Interest Rate Risk by Selling

question 123

True/False

Selective hedging occurs by reducing the interest rate risk by selling sufficient futures contracts to offset the interest rate risk exposure of a portion of the cash positions on the balance sheet.

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Definitions:

Interaction

The process by which entities (people, organisms, particles) act upon each other or communicate, leading to a change or response in one or both entities.

Classes

Educational sessions or courses designed to teach specific subjects or skills.

Primary Group

A small social group characterized by close, personal, and enduring relationships.

Social Group

A collection of individuals who interact with one another, share similar characteristics, and collectively have a sense of unity or identity.