if a banks interest rates were decreasing, it would likely buy_______on its asse

ANSWERS: 1. an interest rate credit default swap

ID: 2649200 • Letter: I

Question

if a banks interest rates were decreasing, it would likely buy_______on its assets.

interest rate floor

interest rate cap

intersest rate foward contract

an interest rate credit default swap

which of the following is consirded a risk of an interst rate swap?

credit risk

soverign risk

basis risk

all the above

if a bank interest rates would decline on their assets it would most likely

purchase an interest rate cap

sell an interest rate floor

purchase an interest rate floor

sell an interest rate collar

ANSWERS:

1. an interest rate credit default swap

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