Choose the Word or Phrase in [ ] Which Will

question 107

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When interest rates are rising,you would prefer a [fixed-rate | variable-rate] loan.

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Definitions:

Foreign Exchange Market

A global marketplace for buying and selling national currencies.

Currency

The system of money in general use in a particular country, or the physical notes and coins themselves.

Short-Run Exposure

Financial risk associated with fluctuating exchange rates that affects a company's transactions or valuation in the near term.

Exchange Rate Risk

The potential for losses resulting from fluctuations in the exchange rate between two currencies in international transactions.