Which of the Following Is True About the 90-Day Bank

question 4

Multiple Choice

Which of the following is true about the 90-day bank accepted bill futures contract? choose one)

• A) The contract is cash settled, rather than settled with delivery of physical securities
• B) The contract is not settled daily
• C) The interest rate of this futures contract is lower than the corresponding forward interest rate for long maturities
• D) This futures contract is used to estimate the forward rates in order to construct a zero curve

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Definitions:

Temperature Control

the process of monitoring and adjusting temperatures to maintain a desired level, important in various scientific and industrial processes as well as in preserving food.

Blood Cells

Blood cells are the cells found in the blood, comprising mainly red blood cells (erythrocytes), white blood cells (leukocytes), and platelets (thrombocytes), each serving various functions within the body.

Vertebra

One of the small bones forming the backbone, providing support and protecting the spinal cord.

Transverse Processes

Projections on vertebrae where muscles and ligaments attach, part of the bone's anatomy.