Which of the Following Statements Is True

question 59

Multiple Choice

Which of the following statements is true?

• A)The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called basis risk.
• B)The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called spread risk.
• C)The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called interest spread risk.
• D)The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called funding risk

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Definitions:

Contradicting

The act of expressing the opposite opinion or proving something to be false or incorrect, often leading to debates or discussions to clarify misunderstandings or differing views.

Complementing

The act of adding to something in a way that enhances or improves it, often by providing something that is lacking or needed.

Individual Gestures

Movements or actions of a person that convey a message or expression, often performed with the hands or body.

Nonverbal Cues

Communication methods not involving words, such as body language, facial expressions, and tone of voice, which convey information or feelings.