ACI
3I0-012 · Question #504
A Eurozone-based bank that is liability-sensitive to market interest rate changes might reduce interest rate risk by:
The correct answer is A. entering into a pay fixed I receive variable standard interest rate swap. See the full explanation below for the reasoning.
Question
A Eurozone-based bank that is liability-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 amortizing interest rate swap
- Centering into a EUR/USD FX swap
- Dentering into a receive fixed I pay variable standard interest rate swap
How the community answered
(45 responses)- A78% (35)
- B13% (6)
- C7% (3)
- D2% (1)
Community Discussion
No community discussion yet for this question.