A Bank Has Made Long-Term Fixed-Rate Mortgages and Has Financed

question 29

Multiple Choice

A bank has made long-term fixed-rate mortgages and has financed them with short-term deposits. To hedge out its interest rate risk, the bank could ________.

• A) sell T-bond futures
• B) buy T-bond futures
• C) buy stock-index futures
• D) sell stock-index futures

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Definitions:

Respiratory Syncytial Virus

A common respiratory virus that causes mild, cold-like symptoms but can be serious, especially in infants and older adults.

Bronchiolitis

An infection of the small airways (bronchioles) in the lungs, mostly affecting infants and young children, causing cough and wheezing.

Mist Tent

A type of medical equipment that creates a fine mist of aerosolized medication or moist air for a patient to breathe in, often used for respiratory conditions.

Noninvasive Oxygen Monitoring

A method to monitor oxygen saturation in the blood without the need for a blood sample, typically using a device called a pulse oximeter.