Banks Use Financial Derivatives for All of the Following Except

question 60

Multiple Choice

Banks use financial derivatives for all of the following except:

• A) hedge asset yields.
• B) adjust maturities by creating synthetic liabilities.
• C) adjust the sensitivity of earnings to changes in interest rates.
• D) lock-in the cost of liabilities.
• E) Banks use financial derivatives for all of the above.

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Definitions:

Biological Factors

refer to the physiological and genetic influences that impact an individual's health, behavior, and personality.

External Factors

Influences that originate outside an individual or system that can affect behavior, decisions, or outcomes within.

Genetics

The examination of genetic inheritance and the differences in traits passed down through generations.

Nutrition

The science that interprets the interaction of nutrients and other substances in food in relation to maintenance, growth, reproduction, health, and disease of an organism.