Question: Trust Bank has fixed rate assets and variable rate liabilities. Which swap contract position would reduce their interest rate risk the most? A. They don't
Trust Bank has fixed rate assets and variable rate liabilities. Which swap contract position would reduce their interest rate risk the most? A. They don't need a swap as they don't face interest rate risk B. Become a "neutral" swap party (making mix of fixed and floating rate payments) C. Become a swap seller (making floating-rate payments) O D. Become a swap buyer (making fixed-rate payments) Reset Selection
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