Which of the following is not a capital market instrument?

1. Treasury bills
2. Bank time deposits with less than one year maturity
3. Short term bonds with one year remaining to maturity
4. All of the above

To protect against rising deposit and other borrowing costs, financial firms may:

1. Sell an interest rate collar
2. Sell call option
3. Pursue a short hedge in financial futures
4. Either (b) or (c).

Advantage of a back-end maturity policy is:

1. Maximizing income potential from security investments if market interest rates rise
2. Reduces investment income fluctuations
3. Maximizing income potential from security investments if market interest rates fall
4. Maximize potential for earnings