Section B (2 Mark)
A bank is concerned about excess volatility in its cash flows from some recent business loans it has made.
Many of these loans have a fixed rate of interest and the bank's economics department has forecast a sharp increase in interest rates. The bank wants more stable cash flows. Which type of credit derivative contract would you most recommend for this situation?

Section A (1 Mark)
To take care of the risks during the foreign travel, Overseas Travel Insurance policy cover provides various other covers, in addition to __________ insurance, such as baggage cover, loss of transport cover, personal accident cover, personal legal liability cover etc.

Section B (2 Mark)
All of the following are assumptions made by technical analysts except:

Section A (1 Mark)
At the time of renewal of working capital limits by a bank, the loan officer observed that M/s ABC's utilisation of funds on a long term basis is 80% of the long term sources during the year. Which among the following would be the result of this kind of financial management?

Section A (1 Mark)
Which one of the following statements is false?