Multiple Choice
Which of the following is a common use of FRAs?
A) To lock in an interest rate on relatively shorter term borrowings.
B) To lock in an interest rate on medium-term borrowings.
C) To lock in an interest rate on relatively longer term borrowings.
D) To lock in an interest rate on any term of borrowings.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: An FI has reduced its interest rate
Q65: What is a difference between a forward
Q67: A forward contract is a standardised contract
Q68: In a 'plain Vanilla swap' the swap
Q69: An interest rate swap is a succession
Q71: Which of the following statements is true?<br>A)In
Q72: An FI portfolio manager holds 10-year $1
Q73: Which of the following statements is true?<br>A)Routine
Q74: Which of the following is an adequate
Q75: A forward contract is an agreement between