Which Best Describes a Hydrolysis Reaction

question 34

Multiple Choice

Which best describes a hydrolysis reaction?

• A)Molecules are broken down into smaller ones by breaking covalent bonds within water molecules and transferring hydrogen atoms and hydroxyl groups to the smaller ones.
• B)Electrically charged molecules separate into ions when they dissolve in water,and then hydrogen ions and hydroxyl groups covalently attach themselves to the oppositely charged ions.
• C)Large molecules are assembled from smaller ones by breaking water into hydrogen and hydroxyl ions.
• D)Dissolving a large molecule in water reduces it to its individual atoms.
• E)The breaking of hydrogen bonds between any two molecules.

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Definitions:

STRIPPED Cash Flows

Cash flows from financial instruments that have been separated from their financial structure, often used in securitization.

Arbitrage

The practice of taking advantage of a price difference between two or more markets, striking a combination of matching deals that capitalize upon the imbalance.

Forward Rates

Interest rates or currency exchange rates fixed now for transactions that will occur at a future date.

Future Short Rates

Predicted interest rates for short-term debt securities in the future, based on current market conditions and monetary policy expectations.