Which of the Following Statements Is True

question 35

Multiple Choice

Which of the following statements is true?

• A)A very actively traded spot contract is the spot rate agreement (SRA).
• B)A very actively traded spot contract is the futures rate agreement (FRA).
• C)A very actively traded forward contract is the forward rate agreement (FRA), commonly used to lock in the interest rate on shorter term borrowings.
• D)A very actively traded spot contract is the option rate agreement (ORA), commonly used to grant the right to buy or sell an asset at a specified price.

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Definitions:

Cash Collection

The process of receiving and managing payments from customers or clients, typically in the form of money.