A Ten Year Interest Rate Cap Has Quarterly Resets

question 2

Multiple Choice

A ten year interest rate cap has quarterly resets. How many caplets does the cap consist of?

• A) 38
• B) 39
• C) 40
• D) 41

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Definitions:

Production Process

The activities, operations, and methodologies used in transforming raw materials into finished goods or services.

Market-Determined Quantity

The quantity of a good or service established through the interaction of supply and demand in a marketplace.

Coal Mine Pollution

Environmental damage caused by the mining and processing of coal, including air and water pollution.

Marginal Social Benefit

The extra benefit that society receives from consuming an additional unit of a good or service.