Use of interest rate futures

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Use of Interest Rate Futures

When Interest Rates Are Low Short-term and long-term interest rates are presently very low. You believe that the Fed will use a monetary policy to maintain interest rates at a very low level.

Do you think financial institutions that could be adversely affected by a decline in interest rates would benefit from hedging their exposure with interest rate futures? Explain.

Reference no: EM131230676

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