The Over-The-Counter Derivative Product Used to Manage Interest Rate Risk

question 50

Multiple Choice

The over-the-counter derivative product used to manage interest rate risk is a/an:

• A) futures contract.
• B) forward rate agreement.
• C) yield rate agreement.
• D) duration agreement.

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Definitions:

Customer Orientation

A business strategy that focuses on creating a positive experience for customers, emphasizing their needs and satisfaction.

Exceeds Expectations

A performance rating that indicates an individual or work has surpassed the set standards or goals.

Retain Customers

Strategies and practices aimed at keeping existing customers engaged and continuing to purchase products or services.

Profitable

Earning more revenue than the cost of goods sold, expenses, and taxes, leading to financial gain.