Which of the Following Statements Is FALSE

question 105

Multiple Choice

Which of the following statements is FALSE?

• A)Forward rates tend not to be good predictors of future spot rates.
• B)Given the risk associated with interest rate changes,corporate managers require tools to help manage this risk.
• C)One of the most important tools to manage the risk of interest rate changes are interest rate forward contracts.
• D)A spot rate is an interest rate that we can guarantee today for a loan or investment that will occur in the future.

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Definitions:

Equity

The concept of fairness and justice within the economic practices, including the distribution of wealth, opportunities, and access to resources.

Post Hoc, Ergo Propter Hoc

A logical fallacy that implies that if one event follows another, then the first event must have caused the second.

Fallacy Of Composition

The misconception that what is true for an individual or part will also be true for the whole or the group.

Co-Dependence

A relationship in which parties rely on each other to a detrimental extent, often undermining their independence and well-being.