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Question
After conducting a rate sensitive analysis, a bank finds itself with the following amounts of rate- sensitive assets and liabilities (RSAs and RSL) and fixed-rate assets and liabilities (FRAs and FRLs), the rate of return and cost rates on the accounts are also given:
The primary federal banks regulators have established guidelines for derivatives usage at banks including:
I. banks must establish internal guidelines regarding hedging activity.
II. banks must establish trading limits.
III. banks are prohibited from using derivatives to speculate.
IV. banks must disclose large derivatives positions that may materially affect stakeholders in their financial statements.
A. I and II only
B. I, III, and IV only
C. I, II, and IV only
D. II, III, and IV only
E. I, II, III, and IV
Answer
This answer is hidden. It contains 1 characters.
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