Which One of the Following Is Defined as a Forward

question 38

Multiple Choice

Which one of the following is defined as a forward rate?

• A)rate agreed upon today for a long-term loan
• B)interest rate quoted today which will apply to all loans made this week
• C)interest rate on a loan made today that will vary as the market rate varies
• D)interest rate adjusted for the anticipated rate of inflation
• E)expected future interest rate implied by current interest rates

---

Definitions:

Ethical Dilemma

A situation that offers potential benefit or gain and that may also be considered unethical.

Debt Financing

A method of raising capital through borrowing, typically involving loans or the issuance of bonds, which must be repaid with interest.

Succession Problem

A challenge organizations face when trying to identify and prepare new leaders to replace old ones in key positions.

Second Generation

Typically refers to the children of immigrants, who are born and raised in the new country, balancing between their family's cultural heritage and the culture of their birthplace.