An Interest Rate Collar Is

question 43

Multiple Choice

An interest rate collar is

• A)writing a floor and writing a cap.
• B)buying a cap and writing a floor.
• C)an option on a futures contract.
• D)buying a cap and buying a floor.
• E)none of the options.

---

Definitions:

Public Sector

The part of the economy composed of both public services and public enterprises, owned and operated by the government.

Generate Revenue

The process of producing income through sales of products, services, or other mechanisms within a business.

Compensation Survey

A tool used by organizations to gather and analyze competitive salary information in order to determine appropriate compensation levels for their employees.

Compensation System

The overall structure and methodology an organization uses to compensate its employees, including wages, salaries, benefits, and incentives.