How Is the Rate of Interest of a Floating- Rate

question 22

Multiple Choice

How is the rate of interest of a floating- rate debt normally expressed?

• A) At a level determined by a gradually- increasing formula stated at initial sale
• B) At a margin over a benchmark such as the bank base rate
• C) At a margin below a benchmark such as the bank base rate
• D) At a fixed rate stated at initial sale

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Definitions:

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The large band of neural fibers connecting the two hemispheres of the brain, facilitating communication and integration of motor, sensory, and cognitive performances between the hemispheres.

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A part of the frontal lobe in the brain responsible for the execution of voluntary movements by sending signals to skeletal muscles.

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