____ are commonly used to hedge interest rate risk.

Name: ____ are commonly used to hedge interest rate risk.
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Interest rate swaps are commonly used to hedge interest rate risk. They involve exchanging fixed-rate and floating-rate interest payments with another party to reduce exposure to interest rate fluctuations. Currency swaps, parallel loans, and forward contracts may be used for other types of risk management, but are not typically used to hedge interest rate risk.

____ Are Commonly Used to Hedge Interest Rate Risk