A 'Floating Rate' Means

question 41

Multiple Choice

A 'floating rate' means:

• A) an interest rate that is indexed to the exchange rate.
• B) a variable interest rate such as the bank bill rate.
• C) an interest rate swap.
• D) an interest rate that is outside the control of the Reserve Bank.

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Definitions:

Identity

The characteristics, attributes, or qualities that make a person or thing unique and distinguishable from others.

Nominal GDP

The value of the final goods and services produced in a given year valued at that year’s prices.

Velocity of Money

The speed at which currency is transferred from one deal to another and the frequency of usage of a currency unit within a specific timeframe.

Unemployment

The state of being without a job despite actively looking for work, usually measured as a percentage of the labor force.