Question 10 3 points Save Answer Consider a financial institution that has the following balance sheet. The Asset side is $9 million loan with a modified duration of 2.4 periods and the liability side is $8 million bond with a modified duration of 8 periods. The modified duration of the net worth is If you decide to use futures contract with a modified duration of 3 periods to duration hedge the net worth, you should take a (short or long) position. If you decide to use an interest rate swap to hedge, you should use swap (pay floating receive fixed or pay fixed receive floating).

What preforms the best over the long term? a) bonds b) mutual funds c) stocks d) certificate of deposit

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.

If a government accumulates chronic budget deficits over time, what's one possible result? a. a collective action problem b. a debt crisis c. regulatory capture d. an unfunded liability