Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A)Microhedging refers to hedging the entire duration gap of an FI using futures or forward contracts.
• B)Macrohedging refers to hedging the entire duration gap of an FI using futures or forward contracts.
• C)Microhedging refers to hedging the entire balance sheet of an FI using futures or forward contracts.
• D)Macrohedging refers to hedging the entire balance sheet of an FI using futures or forward contracts.

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Definitions:

Serious Negative Effects

Severe adverse outcomes or impacts resulting from an action or decision.

Employee Involvement

Practices that engage staff at all levels in decisions, problem-solving, and improvements, fostering a sense of ownership and participation.

Internal Job Postings

Announcements of job openings within a company made available to current employees, often as part of a policy to encourage career development and internal mobility.

Employee Productivity

The efficiency and effectiveness with which an employee or workforce achieves its output goals, often measured against time and resources used.