Derivatives to hedge exposure to increasing interest rates

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Reference no: EM132070264

1. Describe how a bank could use derivatives to hedge an exposure to increasing interest rates.

2. Describe the key features and characteristics of a bank bill. What makes it different from other short term discount securities.

3. How does an ADI determine its target level of capital? What sources of capital are available to it? If it projects a future shortfall of capital, what steps can it take to prevent a shortfall?

Reference no: EM132070264

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