Ask Question
BusinessBusiness
8 February, 17:54

In an FRA, the buyer agrees to pay the seller

A. the increased interest cost on a notional amount if interest rates fall below an agreement rate.

B. Not Sure

C. the increased interest cost if interest rates increase above the agreement rate

D. the increased interest cost on a notional amount if interest rates rise above an agreement rate.

+1
Answers (1)
  1. 8 February, 21:26
    0
    C.

    A Forward Rate Agreement (FRA) is an OTC rate derivative in which the buyer will pay or receive at maturity the difference between a fixed rate and a reference interest rate applied onto either a borrowing or lending (the notional is never exchanged), for a specific period of time.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In an FRA, the buyer agrees to pay the seller A. the increased interest cost on a notional amount if interest rates fall below an agreement ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A new partner contributes accounts receivable to a partnership which appear in the ledger of his sole proprietorship at $ 20,500 and there was an allowance for doubtful accounts of $ 750.
Answers (1)
Clenzo is a company that provides house cleaning services in major urban and suburban areas. marketers at clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will
Answers (1)
Today, the short-run demand and supply of foreign currency originating from financial transactions is A. much less important than is the demand and supply of foreign currency originating from trade in goods. B.
Answers (1)
Chad Jones is the sole owner and manager of Jones Glass Repair Shop. Jones purchased a truck, be used in the business, for its market value of $35,000.
Answers (1)
Sally's Supply orders $3,256 worth of merchandise. Her invoice states 5/10, net 60. How much will she owe if she pays within 10 days and how much will she owe if she pays within 60 days?
Answers (1)
New Questions in Business
You have two investments. The value of Investment A at the end of April was $500, at the end of May was $600, and at the end of June was $400.
Answers (1)
2017 Sold $1,351,700 of merchandise (that had cost $981,800) on credit, terms n/30. Wrote off $21,500 of uncollectible accounts receivable. Received $670,400 cash in payment of accounts receivable.
Answers (1)
Which of the following types of value chain processes directly creates and delivers goods and services to customers? General management processes Postproduction processes Support processes Core processes
Answers (1)
Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on available-for-sale securities of $200,000.
Answers (1)
Pirate Corporation acquired 85 percent of Ship Company's voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each.
Answers (1)
Home » Business » In an FRA, the buyer agrees to pay the seller A. the increased interest cost on a notional amount if interest rates fall below an agreement rate. B. Not Sure C. the increased interest cost if interest rates increase above the agreement rate D.
Sign Up Forgot Password?