Which of the Following Statements Is False

question 11

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 is the interest rate forward contract.
• 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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Definitions:

Bill Of Lading

A bill of lading is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being transported.

Storage Warehouse

A large building used for storing goods in a secure and organized manner.

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.