Swaps are said to offer market completeness.
A)This means that all types of debt instruments are not regularly available for all borrowers.Thus interest rate swap markets assist in tailoring financing to the type desired by a particular borrower.
B)In that the swap market offers price discovery to the market
C)Because you can trade across both currencies and fixed and floating market segments
D)none of the options

Question

Quizplus · Accepted Answer

Swaps allow borrowers to tailor financing to their specific needs by providing access to different types of debt instruments that may not be readily available on the market.

Answer: B
 The swap market helps to establish fair prices for various financial instruments, which in turn contributes to market completeness.

Answer: C
 Swaps allow traders to trade across different market segments, including both currencies and fixed or floating interest rate segments. This helps to create a more complete and diverse financial market.

Therefore, the best choices are A, B, and C.

Swaps Are Said to Offer Market Completeness