Macrohedging is the use of risk-management instruments such as futures and options to reduce the interest rate risk of the overall bank portfolio.

Name: Macrohedging is the use of risk-management instruments such as futures and options to reduce the interest rate risk of the overall bank portfolio.
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Macrohedging involves using derivatives like futures and options to manage the interest rate risk across the entire portfolio of a bank, rather than targeting specific individual exposures.

Macrohedging Is the Use of Risk-Management Instruments Such as Futures