The ____ of interest rate futures ____ the potential adverse effect of rising interest rates on a bank's interest expenses.
A) sale; increases
B) sale; reduces
C) purchase; reduces
D) both A and C are correct

Question

Quizplus · Accepted Answer

Selling interest rate futures can hedge against rising interest rates, thus reducing the potential adverse effect on a bank's interest expenses.

The ____ of Interest Rate Futures ____ the Potential Adverse

The of Interest Rate Futures the Potential Adverse