An FRA Differs from an Interest Rate Swap in Which

question 35

Multiple Choice

An FRA differs from an interest rate swap in which of the following ways?

• A)An FRA has more credit risk
• B)FRAs are federally regulated
• C)Traditionally the payment in an FRA is delayed
• D)FRAs are used only by banks and swaps are used only by corporations
• E)none of the above

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Definitions:

Labor and Overhead

The combined costs of direct labor and indirect expenses incurred during production.

Assembly Department

is a section in manufacturing where components are assembled into final products.

First-In, First-Out Method

An inventory valuation method that assumes goods are sold in the order they are acquired, with the oldest inventory items sold first.

Materials

Raw substances or components used in the manufacturing or production process.