Question: QUESTION 2 5 Assurne a U . S . savings institution funds its fixed - rate mortgages by attracting short - term deposits. If it

QUESTION 25
Assurne a U.S. savings institution funds its fixed-rate mortgages by attracting short-term deposits. If it engages in an interest rate swap, but the inder on the swap does not
4 points move in perfect tandern with its cost of deposits, this reflects
a. sovereign risk.
b. basis risk.
c. credit risk.
d. none of the above
QUESTION 2 5 Assurne a U . S . savings

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