Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap is not sure about interest movements.
• B)An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap has made a mistake in hedging its interest rate risk.
• C)An FI that has a positive on-balance-sheet gap and a negative off-balance-sheet gap is using its off-balance-sheet position to hedge its on-balance-sheet position.
• D)None of the listed options are correct.

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Definitions:

Nucleus Accumbens

A region in the brain's forebrain that plays a central role in the reward circuit, associated with pleasure, reinforcement learning, and addiction.

Dopamine

Dopamine is a neurotransmitter involved in regulating mood, cognition, reward, and pleasure, among other functions.

Basolateral Nucleus

A region of the amygdala involved in memory consolidation and emotional responses, influencing both arousal and the processing of sensory information.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.