An Interest Rate That Adjusts to Current Market Conditions Is

question 37

Multiple Choice

An interest rate that adjusts to current market conditions is called a(n) ________.

• A) floating rate
• B) fixed rate
• C) notional rate
• D) arbitrage rate

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Definitions:

Breach Of Duty

Failure to fulfill a legal or ethical obligation, often leading to liability.

Punitive Damages

Payment allocated to a harmed individual which surpasses the amount needed to offset damages, serving the purpose of reprimanding the responsible party.

Offender Punishment

The penalties or sanctions imposed on individuals who are convicted of violating laws.

Proximate Cause

The extent to which, as a matter of policy, a defendant may be held liable for the consequences of his or her actions. In the majority of states, proximate cause requires the plaintiff and the plaintiff’s damages to have been foreseeable at the time of the accident. In the minority of states, proximate cause exists if the defendant’s actions led to the plaintiff’s harm.