The Most Common Short-Term Interest Rate Used in the Swap

question 33

Multiple Choice

The most common short-term interest rate used in the swap market is

• A) the U.S. discount rate.
• B) the U.S. prime rate.
• C) the U.S. fed funds rate.
• D) LIBOR.
• E) None of the options are correct.

---

Definitions:

Organizational Productivity

A measure of how efficiently and effectively a company uses its resources to produce outputs.

Group Development

The process through which a group progresses over time, involving stages of forming, storming, norming, performing, and adjourning.

Cohesive

The quality of forming a united whole, often referring to the ability of a group or team to work well together towards common goals.

Adjourning

The stage when individuals either leave the team or have no reason to be in further contact with their teammates.