Swaps - FundamentalsofMultinationalFinance,3e(Moffett)...

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Fundamentals of Multinational Finance , 3e (Moffett)  Chapter 15    1
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Interest  Rate and  Currency  Swaps 15.1 
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Multi 1) 
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The single largest interest rate risk of a firm is ________.  A) 
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interest  sensitive securities  B) 
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debt service  C) 
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dividend  payments  D) 
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accounts  payable  Answer:  
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Topic: 
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Interest Rate Risk  Skill: 
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Recognition 2) 
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________  rate is the rate of interest used in a standardized quotation, loan agreement, or financial derivative  valuation.  A) 
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reference rate  B) 
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central rate  C) 
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benchmark rate  D) 
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none of the  above  Answer:  
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Topic: 
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Reference Rate  Skill: 
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Recognition 3) 
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The most  widely  used reference rate for standardized quotations, loan agreements, or financial derivative valuations is the  ________.  A) 
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Federal Reserve  Discount rate  B) 
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federal funds  rate  C) 
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LIBOR  D) 
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one - year U.S.  Treasury Bill  Answer:  
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Topic: 
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LIBOR  Skill: 
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Recognition 4) 
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LIBOR is  an acronym for  A) 
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Latest Interest  Being Offered Rate.  B) 
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Large  International Bank Offered Rate.  C) 
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Swaps - FundamentalsofMultinationalFinance,3e(Moffett)...

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