A/an ________ Is a Contract to Lock in Today Interest

question 19

Multiple Choice

A/an ________ is a contract to lock in today interest rates over a given period of time.

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

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Definitions:

Canadian Dollar

The official currency of Canada, symbolized as CAD and often considered a commodity currency due to Canada's significant natural resource exports.

U.S. Dollar

The official currency of the United States, widely used in international transactions and considered a dominant reserve currency worldwide.

Home Currency

The domestic currency of a company or country in which it conducts its primary business operations.

NPV

A valuation method that calculates the net value of an investment by discounting future cash flows back to their present value.