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Suppose you were the manager of a bank that raised most of its funds from short- term variable-rate deposits and used these funds to make fixed-rate mortgage loans. Should you be more concerned about rises or falls in short-term interest rates? How could you use interest-rate swaps to hedge against the interest-rate risk you face?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9472481

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