The Elements of an FRA Are the ________

question 22

Multiple Choice

The elements of an FRA are the ________.

• A) contract rate, reference rate, settlement rate, notional amount, and settlement date.
• B) stipulation rate, REPO rate, maturity rate, functional amount, and maturity date.
• C) stipulation rate, reference rate, settlement rate, notional amount, and settlement date.
• D) contract rate, REPO rate, terminal rate, functional amount, and terminal date.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Certificates of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, held at a bank or financial institution.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Bank Balance

Bank balance refers to the total amount of money available in a bank account at a specific point in time, as recorded by the financial institution.