If a Bank Has Assets and Liabilities in Dollars and Euros

question 1

Multiple Choice

If a bank has assets and liabilities in dollars and euros, its exposure to interest rate risk can best be minimized if the

• A)currency mix of assets is similar to that of liabilities.
• B)overall rate-sensitivity of assets and liabilities are similar.
• C)rate sensitivity of assets and liabilities is matched for each currency.
• D)A and B

---

Definitions:

CERCLA Trust Fund

Also known as the Superfund, it is a fund established under the Comprehensive Environmental Response, Compensation, and Liability Act to finance the cleanup of hazardous substance spill and contamination sites.

Car Rental

A service where vehicles are rented out to customers for a short period of time, usually ranging from a few hours to weeks.

NEPA

The National Environmental Policy Act, a U.S. law aimed at ensuring federal agencies consider the environmental impact of their actions.

EIS

The Enterprise Investment Scheme, a series of UK tax reliefs designed to encourage investments in small and medium-sized growth companies.