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:

Traditional Role

Established patterns of behavior expected of individuals in specific positions or settings within a cultural or social context.

Priest

A religious leader authorized to perform the sacred rituals of a religion, often acting as an intermediary between humans and one or more deities.

Shaman

A person regarded as having access to, and influence in, the world of good and evil spirits, often within indigenous and tribal societies, performing healings and rituals.

Differences

The state or condition of not being the same; variations between entities in characteristics, qualities, or properties.