A ______ eliminates the effects of extreme movements in interest rates, allowing the bank's cash flows to fluctuate within a specified range.

Name: A ______ eliminates the effects of extreme movements in interest rates, allowing the bank's cash flows to fluctuate within a specified range.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

A collar is a combination of a cap and a floor that serves to limit the range of interest rate movements, ensuring that the bank's cash flows fluctuate within a predetermined range.

A ______ Eliminates the Effects of Extreme Movements in Interest