Which of the Following Is an Advantage of Floating Rate

question 131

Multiple Choice

Which of the following is an advantage of floating rate to investors?

• A) They allow for locking in a multiplier of the initial investment.
• B) Their prices tend to be highly stable regardless of interest rate changes.
• C) They are sold at a deep discount.
• D) Investors always earn greater returns.

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Definitions:

Apportions Damages

The process of dividing up and assigning responsibility for monetary compensation among different parties in a legal case.

Degree of Fault

The level of responsibility or negligence attributed to each party involved in a legal matter or accident.

Strict Liability

A legal doctrine that holds individuals or entities liable for damages and harm caused by their actions, regardless of fault or intention.

Comment (m)

Written or spoken remarks expressing an opinion or reaction to something.