Swap dealers make a small profit from swaps by adding spreads to the fixed rates involved in the deal.

Name: Swap dealers make a small profit from swaps by adding spreads to the fixed rates involved in the deal.
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Question

Quizplus · Accepted Answer

This is true, as swap dealers act as intermediaries between two parties looking to swap certain cash flows or payments. They typically add a spread to the fixed rates offered to one party, which allows them to earn a small profit on each transaction.

Swap Dealers Make a Small Profit from Swaps by Adding