Banks can use futures contracts to both speculate and hedge against future interest rate
Movements:
A) as they desire
B) according to restrictions placed on them by the clearinghouse
C) according to the restrictions placed on them by bank regulatory authorities
D) according to the restrictions placed on them by the Securities Exchange Commission

Question

Quizplus · Accepted Answer

Bank regulatory authorities impose restrictions on banks' use of futures contracts to hedge against future interest rate movements.

Banks Can Use Futures Contracts to Both Speculate and Hedge