When a Strategy Is Put in Place to Limit the Rate

question 36

Multiple Choice

When a strategy is put in place to limit the rate of interest that a firm pays on its debt such that the rate will remain within a stated upper and lower bound, the firm is said to have created an interest
Rate:

• A) Swap.
• B) Floor.
• C) Cap.
• D) Ceiling.
• E) Collar.

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Definitions:

Families

Social units consisting of one or more adults together with the children they care for, connected by marriage, blood relation, or other durable ties.

Equality Of Opportunities

The principle that all individuals should have the same chances to pursue their goals and improve their lives, regardless of their background, race, gender, or socioeconomic status.

Equality Of Outcomes

A socio-economic principle aiming for a similar distribution of material wealth and income among all members of society, often requiring redistribution policies.

Worst-Off Person

A concept in ethics and economics, referring to the individual in a society who has the least well-being, resources, or opportunities.