The expected rate that originates at any point in future for a specific security is classified as __________?

Correct answer: D. forward rate

  • A. structured rate
  • B. backward rate
  • C. termed rate
  • D. forward rate

Explanation

A forward rate is an interest rate agreed or expected for a period that begins at a future date. The term does not mean a backward or structured rate.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? [email protected]

About Business Finance

Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

Practise Business Finance

975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Discussion

Stuck on an option, or know a faster way to get there? Ask or explain it here.

No comments yet. Be the first to explain this one.

Exams that ask Management Sciences questions like this

Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Business Finance questions