Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)The fixed rate in the OIS market can be expected to be above the current cash rate when the market expects the RBA will increase the cash rate.
• B)An OIS is used by parties who have an exposure to the cash rate.
• C)Most OISs have terms of six months or less.
• D)The cash settlement in an OIS swap, if any, is made when the swap matures.
• E)None of these.

---

Definitions:

Economic Development

The process through which a nation improves the economic, political, and social well-being of its people.

Saving and Investment

The act of setting aside income for future use and the use of those savings for purchasing capital goods or financial assets.

Productivity of Labor

The measure of output per worker or per hour worked, indicating how effectively labor inputs are converted into goods or services.

Labor Supply

The total number of people available to work, either already employed or actively looking for work.