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Question 40 1 pts A bank has a large number of fixed rate loans outstanding (assets). However, its financing of these of these assets are

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Question 40 1 pts A bank has a large number of fixed rate loans outstanding (assets). However, its financing of these of these assets are based upon variable rates loans (liabilities). In order to protect its spread from changes in interest rates, the bank could: 1. Enter into a swap agreement to pay fixed and receive variable on a notional amount of its assets 2. Enter into a swap agreement to pay variable and receive fixed on a notional amount of its liabilities 3. Enter into a swap agreement to pay variable and receive fixed on a notional amount of its assets 4. Enter into a swap agreement to pay fixed and receive variable on a notional amount of its liabilities O a. 1 only b. 2 only O c. 1 or 4 only O d. 2 or 3 only O e. 3 or 4 only

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