For example, when banks lend moneyto the firm, they insist on a formal contract stating the rateofinterest andrepayment dates, perhaps placing restrictions on dividends or additionalborrowing.
Interestrate forward: (forward rate agreement FRA) : the forward rate agreement is the most basic of the OTC interestratecontract.
—利率远期(利率远期协议FRA)：远期利率协议是场外交易利率合约中最基本的合约。
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But a series of financial crises made it clear in credit market non-price terms ofcontract can also play an important role to the equilibrium of credit market as well as interestrate.