An FRA is:
A) A cash instrument
B) An exchange traded derivative
C) An interest rate derivative
D) A balance sheet instrument

Name: An FRA is: A) A cash instrument B) An exchange traded derivative C) An interest rate derivative D) A balance sheet instrument
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

FRA stands for Forward Rate Agreement which is an interest rate derivative used to hedge against interest rate risks. Therefore, the best choice is C, an interest rate derivative.

An FRA Is