If a financial institution that has more rate-sensitive liabilities than assets negotiates a rate-capped swap, its ____ payments will be capped, and it will ____ an up-front premium in exchange for the cap.
A) outflow; receive
B) outflow; pay
C) inflow; pay
D) inflow; receive
Correct Answer:
Verified
Q10: Savings institutions participate in the swap market
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Q16: A(n)_ swap involves an exchange of interest
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