The US and Euro-Zone Day-Count Convention for a Floating-Rate Note

question 31

Multiple Choice

The US and euro-zone day-count convention for a floating-rate note (based on Libor and Euribor,respectively) is

• A)Actual/365.
• B)Actual/360.
• C)Actual/Actual.
• D)30/360.

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Definitions:

European Countries

Nations located on the European continent, each with its distinct culture, history, and political system.

European Union

A political and economic alliance of European countries.

Customs Laws

Regulations imposed by governments on the import and export of goods, aimed at controlling the flow of goods across borders.

Protectionism

A call for tariffs and favorable treatments to protect domestic firms from foreign competition.