JUNE 2013

1:

Match the following items in List - A with the most appropriate options from List - B :

List - A

List - B

a. A lender buys securities to protect himself from falling interest rate

1. Interest rate collar

b. A borrower buys securities to protect himself from rising interest rate

2. Interest rate cap

c. A combination of interest rate cap and floor

3. Interest rate corridor

d. A combination of two or more interest rate caps

4. Interest rate floor

 

A.

a   b   c   d

2   4   3   1

B.

a  b  c   d

4  2   1  3

C.

a  b  c   d

4  2  3  1

D.

a  b  c   d

3  2   1  4

 

Answer : D

Explanation :

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Option: A

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