If a Bank Sells CD Futures, It ____ of Rising

question 81

Multiple Choice

If a bank sells CD futures, it ____ of rising interest rates and ____ of declining interest rates on its interest expenses.

• A)reduces the potential adverse effect; reduces the potential favorable effect
• B)increases the potential adverse effect; increases the potential favorable effect
• C)decreases the potential adverse effect; increases the potential favorable effect
• D)increases the potential adverse effect; decreases the potential favorable effect

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Definitions:

Milliliter

A unit of volume in the metric system, equal to one thousandth of a liter.

Discontinue

To stop using a product or halt a process or treatment, often on a permanent basis.

NPO

An abbreviation for "nil per os," a medical instruction meaning to withhold oral food and fluids from a patient for a specific period.

QAM

stands for "Quality Assurance Management" or "Quadrature Amplitude Modulation" depending on context; in healthcare, it often relates to maintaining standards.