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Subject - Business Ethics:

Corporate Finance

MCQ - 64-2169

Question:

which of the following could be used as a hedging tool against unfavorable movement in interest rate?

  1. Currency option
  2. Currency futures
  3. Interest rate option
  4. Currency futures

Correct Answer: C

Explanation:

When borrowing on variable interest rates, a firm may want to utilize option as hedging tool against the unfavorable interest rate movements over the full term of loan or deposit

Record Performance

80 MCQ for effective preparation of the test of Corporate Finance of Business Ethics section.

Read the MCQ statement: which of the following could be used as a hedging tool against unfavorable movement in interest rate? , keenly and apply the method you have learn through the video lessons for Corporate Finance to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 64-2169.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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