A tool for managing interest-rate risk that requires exchange of payment streams is a
A) futures contract.
B) forward contract.
C) swap.
D) micro hedge.
C
You might also like to view...
Why is abstraction important in developing economic theories?
Combinations of goods that are beyond the production possibilities curve: (check all that apply)
a. are inefficiently produced. b. are efficiently produced. c. are attainable. d. are currently unattainable. e. require economic growth. f. would require resources that are not currently available.
An increase in the price of product A will:
A. reduce the demand for resources used in the production of A. B. increase the demand for complementary product C. C. increase the demand for substitute product B. D. reduce the demand for substitute product B.
If the government thinks the natural unemployment rate is 5%, when it is really 6%, then the government will
A) overestimate the actual deficit. B) underestimate the actual deficit. C) overestimate the cyclically adjusted deficit. D) underestimate the cyclically adjusted deficit. E) none of the above