Matched funding by banks:
A) is a form of Macro hedging.
B) requires using instruments of risk management,such as financial futures,options on financial futures and interest rate swaps to reduce the interest rate risk of the firm's entire balance sheet.
C) happens if for instance fixed-rate loans are funded with fixed rate deposits or fixed rate borrowed funds of the same maturity.
D) is achieved when banks borrows short and lend long.
Correct Answer:
Verified
Q48: Which of the following statements is NOT
Q49: Capital is important to a bank because:
A)it
Q50: Which of the following is NOT part
Q51: If the duration gap is 0 and
Q52: The Basel III Accord incorporates _ into
Q53: The most common way of assessing the
Q54: Maturity gap is:
A)a measure of the difference
Q55: If we are at the bottom of
Q56: Which of the following is NOT a
Q58: A bank expecting interest rates to rise
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents