When a financial institution acts as a(n) ____ to an interest rate swap, it simply arranges a swap between two parties.

Question

Quizplus · Accepted Answer

A broker is a financial institution that arranges transactions between parties, such as arranging an interest rate swap between two parties. Counterparty refers to one of the parties involved in the swap, not the financial institution facilitating the transaction. Ultrapaty is not a commonly used term in finance.

When a Financial Institution Acts as A(n) ____ to an Interest