An FRA Is Most Like Which of the Following Transactions

question 60

Multiple Choice

An FRA is most like which of the following transactions

• A)an interest rate cap
• B)an interest rate floor
• C)an interest rate collar
• D)a forward contract
• E)none of the above

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Definitions:

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Collection Suit

A legal action taken by creditors to collect unpaid debts from a debtor through the court system.

Minor

Anyone under the age of majority—18 in most states, 21 in some jurisdictions.

Emancipated Minor

A legal status granted to individuals under 18, allowing them rights and responsibilities of legal adulthood under specific conditions.