If a Borrower Has Entered into a FRA and Its

question 66

Multiple Choice

If a borrower has entered into a FRA and its interest cover is specified as 3Mv9M,this means:

• A) nine-month interest rates beginning in three months.
• B) six-month interest rates beginning in three-months.
• C) nine-month interest rates beginning in six months.
• D) six-month interest rates beginning in six months.

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Definitions:

Probability

A measure of the likelihood that an event will occur.

Result

The outcome or consequence of an action, experiment, or process.

Statistically Significant

A term indicating that the results of a study are unlikely to have occurred by chance alone, according to predefined criteria.

Experimental Group

The group in a scientific study that receives the treatment or intervention being tested, in contrast to the control group.