A Contract Wherein the Buyer Agrees to Pay a Specified

question 47

Multiple Choice

A contract wherein the buyer agrees to pay a specified interest rate on a loan that will be originated at some future time is called a(n)

• A)forward rate agreement.
• B)futures loan.
• C)option on a futures contract.
• D)interest rate swap contract.
• E)currency swap contract.

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Definitions:

Information Flow

The movement or transfer of information from one place, person, or group to another, within any system that processes data.

Centralised Communication

Pertains to a communication structure where all decisions and messages flow through a central point or individual, typically found in hierarchical organizations.

Co-ordination Loss

The inefficiencies that arise in group tasks due to the poor integration of efforts, resources, or actions among team members.

Highly Centralised

Pertaining to a system or organization where decision-making is kept at a single central point, often leading to a concentration of power.