What Is a Microhedge

question 2

Multiple Choice

What is a microhedge?

• A) It is a hedge of the bank's aggregate portfolio.
• B) It is a hedge using just one type of futures contract.
• C) It is the hedge of a specific asset or liability for which the bank is exposed to interest rate risk.
• D) It is a hedge using two or more types of futures contracts.
• E) It is a has that has a duration of less than one month.

---

Definitions:

Scapula

A flat, triangular-shaped bone that forms part of the shoulder girdle, providing attachment sites for muscles of the shoulder.

Anterior Side

The front side of the body or any anatomical structure.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, keeping the head of the upper arm bone firmly within the shallow socket of the shoulder.

Lesser Tubercles

Lesser Tubercles are small, rounded projections found on the humerus bone near the shoulder, playing a vital role in arm movement by providing attachment points for muscles.