If a Pension Fund Manager Is Afraid Interest Rates May

question 77

Multiple Choice

If a pension fund manager is afraid interest rates may go down on his short-term portfolio of 90-day Treasury bills,he could hedge by going

• A)Long on Treasury bill futures contracts
• B)Short (sell)Treasury bill futures contracts
• C)Long on U.S.dollar contracts
• D)Short (sell)the U.S.dollar contracts

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Definitions:

Section 11

A provision of the Securities Act of 1933 that imposes liability on issuers for giving false or misleading information within registration statements.

Blue-Sky Laws

State securities laws designed to protect investors from fraudulent sales practices and securities offerings.

State Securities Laws

State securities laws, also known as "Blue Sky Laws," are regulations at the state level designed to protect investors against fraud and to regulate the sale and offering of securities.

Federal Law

Legislation enacted by the national government of a country.