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:

Ambitious

Describes a person with a strong desire to achieve success, often through hard work, persistence, and determination.

Type B

A personality type characterized by a laid-back, less competitive, and more reflective demeanor, often contrasted with Type A personality.

Laid Back

A description for a person or approach that is relaxed, unhurried, and untroubled by stress or urgency.

Framingham Heart Study

A landmark longitudinal study initiated in 1948 aimed at identifying common factors or characteristics that contribute to cardiovascular disease by following its development over a long period in a large group of participants.