When One Party Trades a Variable Interest Rate for a Fixed

question 10

Multiple Choice

When one party trades a variable interest rate for a fixed interest rate or vice versa then __________ occurs.

• A) Future contracts
• B) Interest rate swap
• C) Option
• D) Forward contracts

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Definitions:

Anterior

Refers to the front or forward direction in the body's anatomy.

Lumbar

Relating to the lower part of the spine, consisting of five vertebral bones between the ribcage and pelvis.

Intercarpal

Relating to the joints and spaces between the carpal bones of the wrist.

Metacarpophalangeal

Referring to the joints between the metacarpal bones of the hand and the proximal phalanges of the fingers.