An important characteristic of the Euro currency market is that loans are made on a
A floating-rate basis is a characteristic of Eurocurrency lending. The loan rate is periodically reset with reference to a market rate, usually with an agreed margin. This…
Choose your answer
An important characteristic of the Euro currency market is that loans are made on a
Answer and explanation
Correct answer B
A floating-rate basis is a characteristic of Eurocurrency lending. The loan rate is periodically reset with reference to a market rate, usually with an agreed margin. This allows the rate charged on the loan to adjust as market interest rates change.
Practice for these exams
-
West Bengal SET (WB SET)