Multiple Choice
A financial institution has equity equal to one-tenth of its assets.If its asset duration is currently equal to its liability duration,then to immunize,the firm needs to:
A) decrease the duration of its assets.
B) increase the duration of its assets.
C) decrease the duration of its liabilities.
D) maintain the equal durations.
E) increase either the duration of its assets or of its liabilities.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: Hedging in the futures markets can reduce
Q41: There are always at least _ counterparties
Q42: Last week,you sold a futures contract on
Q43: Assume the futures contracts on silver are
Q44: When interest rates shift,the price of zero
Q46: Assume a bank has a $25 million
Q47: The party most apt to take a
Q48: Derivatives can be used to either hedge
Q49: To protect against interest rate risk,the mortgage
Q50: LIBOR stands for:<br>A)London Interest Basis Offered Rate.<br>B)London