menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 23: Futures and Forwards
  5. Question
    An FI with a Positive Duration Gap Is Exposed to Interest
Solved

An FI with a Positive Duration Gap Is Exposed to Interest

Question 24

Question 24

True/False

An FI with a positive duration gap is exposed to interest rate declines and could hedge its interest rate risk by buying forward contracts.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: It is not possible to separate credit

Q20: Tailing-the-hedge normally requires an FI manager to

Q21: A U.S.bank issues a 1-year, $1 million

Q22: Futures contracts are standard in terms of

Q23: If a 16-year 12 percent semi-annual $100,000

Q25: A U.S.bank issues a 1-year, $1 million

Q26: Hedging selectively only a portion of the

Q27: The process by which the prices on

Q28: The average duration of the loans

Q29: Which of the following indicates the need

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines