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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Kit Question
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.
Interest rate smoothing is exactly as is stated in your first paragraph.
