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What Is the Main Reason the Swap Dealers' Spreads Are

Question 94

Multiple Choice

What is the main reason the swap dealers' spreads are kept to a minimum?


A) The competition among the swap dealers is fierce which drives the spreads down
B) The swap market is small and not attractive enough for the major financial institutions
C) The spreads are heavily controlled by the financial market regulators
D) There are very few swap dealers in the market

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