menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 16: Off-Balance-Sheet Risk
  5. Question
    One Way to Completely Protect the Lender Against Interest Rate
Solved

One Way to Completely Protect the Lender Against Interest Rate

Question 103

Question 103

True/False

One way to completely protect the lender against interest rate risk on a loan commitment is for the lender to price the loan at a variable rate against some index.

Correct Answer:

verifed

Verified

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

Related Questions

Q98: What is a swap?<br>A)An agreement between two

Q99: The use of letters of credit (LCs)

Q100: The current market value or contingent claim

Q101: The extremely high growth of OBS activities

Q102: Interest rate risk is part of the

Q104: Sun Bank has issued a one-year $5

Q105: An FI has assets of $800 million

Q106: The use of an up-front fee by

Q107: The increased regulation of the derivatives markets

Q108: To be an affiliate of a holding

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