As part of risk management when a company changes the timing of its cash outflows to minimise the effect of interest rate changes,this technique is called:
A) an external technique of interest rate management.
B) an internal technique of interest rate management.
C) a repricing gap technique.
D) a duration technique.

Question

Quizplus · Accepted Answer

The technique mentioned in the question is an internal technique of interest rate management as it involves changing the company's own internal cash flow timing. The other options mentioned in the question, such as external techniques and repricing gap and duration techniques, do not directly relate to changing the timing of cash outflows to manage interest rate risk.

As Part of Risk Management When a Company Changes the Timing