____ are commonly used to hedge interest rate risk.

Question

Quizplus · Accepted Answer

Interest rate swaps are commonly used to hedge interest rate risk. This is because they involve exchanging a fixed interest rate for a floating interest rate or vice versa, which helps to mitigate changes in interest rates. Currency swaps may be used to hedge currency risk, parallel loans involve two loans in different currencies, and forward contracts are primarily used to lock in a future price for a particular asset.

____ Are Commonly Used to Hedge Interest Rate Risk