AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 327 Topic 33 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 327 Topic 33 Discussion

CWM_LEVEL_2 Exam Topic 33 Question 327 Discussion:
Question #: 327
Topic #: 33

Section B (2 Mark)

If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate risk with a swap that requires Second National to


A.

Pay fixed rate while receiving floating rate.


B.

Receive fixed rate while paying floating rate.


C.

Both receive and pay fixed rate.


D.

Both receive and pay floating rate.


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