The Financial Manager of a Firm Has a Variable Rate

question 3

Multiple Choice

The financial manager of a firm has a variable rate loan outstanding. If she wishes to protect the firm against an unfavorable increase in interest rates she could:

• A) sell an interest rate futures contract of a similar maturity to the loan.
• B) buy an interest rate futures contract of a similar maturity to the loan.
• C) swap the adjustable rate loan for another of a different maturity.
• D) none of the above

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Definitions:

Tasks

Specific pieces of work or activities assigned to or expected to be accomplished by a person or group.

CLX Modules

Modules designed for use in ControlLogix systems, which are part of the Allen-Bradley PLC range, supporting various I/O and special functions.

Properly Configured

Refers to a state where devices, software, or systems have been set up with the correct settings and parameters to function optimally.

CLX Timer Instruction

A specific command used in Rockwell Automation's ControlLogix (CLX) PLC programming for setting up timers.