A forward interest rate contract is called a(an):
A)interest rate options agreement.
B)forward rate agreement.
C)futures rate agreement.
D)none of these answers.

Question

Quizplus · Accepted Answer

A forward interest rate contract is commonly referred to as a forward rate agreement (FRA). It is an agreement between two parties where they agree on a fixed interest rate to be applied to a specific amount of principal at a future date. Option contracts and futures contracts are different types of financial instruments.

A Forward Interest Rate Contract Is Called A(an)