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Which of the Following Transactions Would Have the Effect of Shortening

Question 226

Multiple Choice

Which of the following transactions would have the effect of shortening the average duration of liabilities in the banking book?


A) selling holdings of 30-year German Government bonds
B) replacing retail savings accounts with 3-month borrowings under repo
C) selling futures contracts on 30-year German Government bonds
D) placing a 20-year covered bond in the market

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