A Tool for Managing Interest-Rate Risk That Requires Exchange of Payment

question 50

Multiple Choice

A tool for managing interest-rate risk that requires exchange of payment streams is a

• A)futures contract.
• B)forward contract.
• C)swap.
• D)micro hedge.

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Definitions:

Thermal Cycling

A pattern of heating and cooling that, over time, can cause resistance to build up in electrical connections.

Amps

A unit of electric current, short for amperes, indicating the amount of electrical charge passing a point per second.

Voltmeter

An electrical measuring instrument used to measure the electrical potential difference between two points in an electric circuit.

Circuit

A closed path through which electric current flows, typically involving power sources, loads, and conductive materials.