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:

Hypochondriacs

Individuals who excessively worry about having a serious illness despite the absence of medical evidence to support their concerns.

Double-Blind

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent biases.

Participants

Individuals who take part in a study, experiment, or any form of research or group activity.

Experimenters

Researchers who conduct controlled tests to explore hypothesis, examine cause-and-effect relationships, or discover new phenomena.