Which of the Following Statements Is FALSE

question 105

Multiple Choice

Which of the following statements is FALSE?

• A)Forward rates tend not to be good predictors of future spot rates.
• B)Given the risk associated with interest rate changes,corporate managers require tools to help manage this risk.
• C)One of the most important tools to manage the risk of interest rate changes are interest rate forward contracts.
• D)A spot rate is an interest rate that we can guarantee today for a loan or investment that will occur in the future.

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