________ the over-the-counter equivalent of the exchange-traded ________ on short-term rates. Typically, the short-term rate is ________.

Question

Quizplus · Accepted Answer

A forward rate agreement is the over-the-counter equivalent of an exchange-traded futures contract on short-term rates. Typically, the short-term rate referenced is LIBOR. Therefore, option C is the correct choice. Options A, B, and D are incorrect because they either incorrectly pair the products with their equivalents or reference the wrong short-term rate.

________ the Over-The-Counter Equivalent of the Exchange-Traded ________ on Short-Term

the Over-The-Counter Equivalent of the Exchange-Traded on Short-Term