A euro zone-based bank that is asset-sensitive to market interest rate changes might reduce interest rate risk by:
Posted: Wed Mar 16, 2022 12:18 pm
A euro zone-based bank that is asset-sensitive to market interest rate changes might reduce interest rate risk by:
A. entering into a pay fixed I receive variable standard interest rate swap
B. entering into a receive fixed I pay variable standard interest rate swap
C. entering into a pay fixed / receive variable amortizing interest rate swap
D. entering into a GBP/USD FX swap
Answer : B
An interest rate swap (IRS) is:
A. A contract to exchange one stream of interest payments for another
B. A temporary exchange of one deposit for another of a longer maturity in the same currency
C. A forward-forward contract
D. A contract to exchange an interest rate stream in one currency for another one in a different currency
Answer : A
Under Basel rules the meaning of CCF is:
A. Currency Conversion Factor
B. Credit Conversion Factor
C. Credit Contribution Factor
D. Credit Collateralization Factor
Answer : B
An option contract that gives the buyer the right to exercise the option at several distinct points during its life is called:
A. European-style option
B. American-style option
C. Bermudan option
D. Asian option
Answer : C
A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?
A. 7.09%
B. 7.03%
C. 6.90%
D. 6.95%
Answer : C
A. entering into a pay fixed I receive variable standard interest rate swap
B. entering into a receive fixed I pay variable standard interest rate swap
C. entering into a pay fixed / receive variable amortizing interest rate swap
D. entering into a GBP/USD FX swap
Answer : B
An interest rate swap (IRS) is:
A. A contract to exchange one stream of interest payments for another
B. A temporary exchange of one deposit for another of a longer maturity in the same currency
C. A forward-forward contract
D. A contract to exchange an interest rate stream in one currency for another one in a different currency
Answer : A
Under Basel rules the meaning of CCF is:
A. Currency Conversion Factor
B. Credit Conversion Factor
C. Credit Contribution Factor
D. Credit Collateralization Factor
Answer : B
An option contract that gives the buyer the right to exercise the option at several distinct points during its life is called:
A. European-style option
B. American-style option
C. Bermudan option
D. Asian option
Answer : C
A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?
A. 7.09%
B. 7.03%
C. 6.90%
D. 6.95%
Answer : C