Management of interest-rate risk involves:
A)taking advantage of discrepancies between fixed and floating interest rates.
B)minimising losses due to fluctuations in exchange rates.
C)ensuring a company's assets are liquid.
D)minimising losses due to fluctuations in interest rates.

Question

Quizplus · Accepted Answer

Interest-rate risk refers to the potential losses a company may face due to fluctuations in interest rates. Therefore, managing interest-rate risk involves minimizing these losses. The other options listed are not directly related to managing interest-rate risk.

Management of Interest-Rate Risk Involves