An Interest Rate Collar Involves the ____ of an Interest

question 63

Multiple Choice

An interest rate collar involves the ____ of an interest rate cap and the simultaneous ____ of an interest rate floor.

• A)sale; sale
• B)sale; purchase
• C)purchase; purchase
• D)purchase; sale

---

Definitions:

Two-Factor Theory

A psychological theory proposing that emotions are composed of two factors: physiological arousal and cognitive interpretation.

Physical Arousal

The bodily response to stimuli, characterized by increased physiological activity, including heart rate, blood pressure, and energy levels.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by triggering the "fight or flight" response.

Salivation

The involuntary production of saliva in the mouth, which can be stimulated by the anticipation of food or the presence of something to chew.