Generally,which of the Following Is FALSE Regarding Interest Rate Risk

question 10

Multiple Choice

Generally,which of the following is FALSE regarding interest rate risk management techniques?

• A)Borrowers can protect themselves from upward movements in interest rates by using interest rate caps
• B)Borrowers can protect themselves from upward movements in interest rates by using interest rate futures contracts
• C)Borrowers can benefit from downward movements in interest rates by using interest rate caps
• D)Borrowers can benefit from downward movements in interest rates by using interest rate futures contracts

---

Definitions:

Timekeeper

A person or device responsible for recording the duration of an event, often used in sports, work activities, or any scenario where tracking time is essential.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Indirect Labor

Refers to the labor costs of employees who do not directly work on the production of products, but support the production process.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production of goods or services.