True/False
A bank with a positive dollar gap could reduce its interest rate risk by receiving fixed and paying floating in an interest rate swap.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q34: Options represent contracts that provide the holder
Q35: The margin on a futures contract represents
Q36: A bank may defer gains and losses
Q37: In an interest rate swap two firms
Q38: In a macro hedge, the bank is
Q40: The _ is really a performance bond
Q41: Suppose that a bank has a negative
Q42: Differences in credit quality spreads between floating
Q43: What lowers the credit risk of the
Q44: The seller of a futures contract is