The Most Commonly Encountered Ridge Characteristics (Used by AFIS)are The

question 73

Multiple Choice

The most commonly encountered ridge characteristics (used by AFIS) are the:

• A)Ridge ending and island.
• B)Ridge crossing and short ridge.
• C)Bifurcation and ridge ending.
• D)Bifurcation and trifurcation.

---

Definitions:

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery and payment.

Covered Interest Arbitrage

A strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.

Nominal Risk-Free Rate

The rate of return on the safest investments, such as government bonds, without adjusting for inflation.

Forward Rate

The future interest rate agreed upon in a forward contract, which is a derivative financial instrument.