An Interbank-Traded Contract to Buy or Sell Interest Rate Payments

question 35

Multiple Choice

An interbank-traded contract to buy or sell interest rate payments on a notional principal is called a/an:

• A) forward rate agreement.
• B) interest rate future.
• C) interest rate swap.
• D) none of the above

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Definitions:

Normative, Nonrational, Affective

Describes decision-making or behavior guided by societal norms and emotional responses rather than logical rationale.

Structuration

The theory that describes the two-way process by which social systems are produced and reproduced through individuals' use of rules and resources in interaction.

Anthony Giddens

A British sociologist renowned for his theory of structuration, which explores the interplay between individual agency and social structure.

Rules and Resources

Concepts in sociology and social theory referring to the guidelines that dictate social action and the means available to individuals and groups to achieve their goals.