A Tool for Managing Interest-Rate Risk That Requires Exchange of Payment

question 50

Multiple Choice

A tool for managing interest-rate risk that requires exchange of payment streams is a

• A)futures contract.
• B)forward contract.
• C)swap.
• D)micro hedge.

---

Definitions:

Illegal

Illegal refers to actions or activities that are forbidden by law and subject to legal penalties.

Bad News

Information that is unwelcome, disappointing, or negative in nature.

Whistle-Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an employee or former employee.

Organization

An entity, such as a company, institution, or association, comprised of people and resources working towards common goals or objectives.