What Kind of Interest Rate Swap (Of Liabilities) Would an FI

question 11

Multiple Choice

What kind of interest rate swap (of liabilities) would an FI with a positive funding gap utilise to hedge interest rate risk exposure?

• A)swap in floating-rate payments for fixed-rate payments
• B)swap in floating-rate receipts for fixed-rate payments
• C)swap in fixed-rate receipts for floating-rate receipts
• D)swap in floating-rate receipts for fixed-rate receipts

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Definitions:

Role Analysis Technique

A process of formally identifying expectations associated with a role.

Job Satisfaction

The level of contentment employees feel about their job, which can include aspects such as work environment, job duties, and compensation.

Job Withdrawal

The process by which an employee disengages from their work role, which may manifest as absenteeism, reduced effort, or eventually leaving the job.

Emotional Withdrawal

A defense mechanism where an individual distances themselves emotionally from others or certain situations.