When One Party Agrees to Pay the Other If the Reference

question 59

Multiple Choice

When one party agrees to pay the other if the reference rate exceeds a predetermined level, the agreement is referred to as ________.

• A) an interest rate cap.
• B) an interest rate option.
• C) an interest rate swap.
• D) an interest rate floor.

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Definitions:

Single Job

A position of employment where an individual is hired to perform a specific set of tasks or responsibilities.

Flextime

A scheduling policy in which full-time employees may choose starting and ending times within guidelines specified by the organization.

Zero-hour Contract

An employment agreement where the employer does not guarantee regular working hours, and the employee is only expected to work when called upon.

Compressed Workweek

A work schedule that allows an employee to work a full-time job in fewer days than the typical five-day workweek.