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ACI

3I0-012 · Question #365

A fixed rate forward/forward non-deliverable deposit/loan transaction, settled in cash with an agreed upon process for calculating the market reference at the commencement of the forward/forward…

The correct answer is B. a forward rate agreement. See the full explanation below for the reasoning.

Question

A fixed rate forward/forward non-deliverable deposit/loan transaction, settled in cash with an agreed upon process for calculating the market reference at the commencement of the forward/forward period, is called:

Options

  • Aan interest rate swap
  • Ba forward rate agreement
  • Ca short term interest rate future
  • Dan interest rate collar

How the community answered

(42 responses)
  • A
    7% (3)
  • B
    81% (34)
  • C
    2% (1)
  • D
    10% (4)

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