The Profits of a Financial Institution with Interest-Rate Sensitive Liabilities

question 53

Multiple Choice

The profits of a financial institution with interest-rate sensitive liabilities and interest rate-insensitive assets are ____ with hedging than without hedging if interest rates decrease.

• A)higher
• B)the same
• C)lower
• D)higher or the same

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Definitions:

John Rawls

A philosopher known for developing the theory of justice as fairness, which considers how societal resources can be distributed equitably.

Income Distribution

The way in which total income is shared amongst the population.

Liberalism

A school of thought advocating for personal liberty, the consent of those under governance, and fairness within the legal system.

Government Property

Assets owned by the state or government, including buildings, land, and resources.