Which of the Following Can Be Used to Reduce Interest

question 38

Multiple Choice

Which of the following can be used to reduce interest rate risk over a long period of time?

• A)an interest rate futures agreement
• B)an interest rate swap agreement
• C)a put option
• D)a call option

---

Definitions:

Mean Mileage

The average distance a vehicle can travel per unit of fuel.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Confidence Interval

A selection of values from statistical analyses of samples, likely to cover the value of an undiscovered population parameter.

Shelf Life

The length of time for which an item remains usable, fit for consumption, or saleable.