econ 341 help

so say,

an international financial institution has primarily variable rate mark denominated assets and long term fixed rate yen denominated liabilities. to protect its net worth, what would be the most appropriate to swap:

a) VR mark liabilities for VR yen liabailities
b) VR yen liabilities for fixed rate yen liabilities
c) fixed rate yen for variable rate yen liabilities
d) VR mark liabilities for fixed rate mark liabilities
e) fixed rate mark liabilities for fixed rate yen liabilities

The answer is C but im not sure how they got it. I was hoping somebody could clear things up for me

Thanks

baha i took this course last semester and remember this question among many more. i recall it has something to do with the fact that you want your liabilities and assets to be in the same currency and to both be variable (or fixed?) to minimize currency risk or whatever.

by default a,d and e do not even apply since you dont have those specific liabilities to begin with.

c makes the most sense.