ACI
3I0-012 · Question #118
A euro zone-based bank that is asset-sensitive to market interest rate changes might reduce interest rate risk by:
The correct answer is B. entering into a receive fixed I pay variable standard interest rate swap. See the full explanation below for the reasoning.
Question
A euro zone-based bank that is asset-sensitive to market interest rate changes might reduce interest rate risk by:
Options
- Aentering into a pay fixed I receive variable standard interest rate swap
- Bentering into a receive fixed I pay variable standard interest rate swap
- Centering into a pay fixed / receive variable amortizing interest rate swap
- Dentering into a GBP/USD FX swap
How the community answered
(36 responses)- A14% (5)
- B75% (27)
- C8% (3)
- D3% (1)
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