A Long Hedge Would Be Appropriate for a Bank That

question 11

True/False

A long hedge would be appropriate for a bank that wants to reduce its cash market risk associated with .a decline in interest rates.

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Definitions:

Correlation

A numerical indicator showing the degree to which two or more variables move in relation to one another.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together, and the strength and direction of their relationship.

Variables

Aspects of a study or situation that can change or vary, such as characteristics of participants or environmental conditions.

Consistency

The quality of always behaving or performing in a similar way, or of always occurring at the same rate or level.