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Kit Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Kit Question

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • September 3, 2022 at 10:23 am #665011
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Professor the statement below is true, I did false.
    Interest rate smoothing is the policy of some central banks to move official interest rates in a sequence of relatively small steps in the same direction, rather than waiting until making a single larger step.

    I studied interest rate smoothing is taking combination of fixed and floating interest to minimize interest rate risk. However, the statement above is completely different.

    September 4, 2022 at 7:44 am #665073
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Interest rate smoothing is exactly as is stated in your first paragraph.

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