While an interest rate swap may be nothing more than a package of forward contracts, several important reasons suggest that it is not a redundant contract. Which of the below is NOT one of these?
A) The longest maturity of forward or futures contracts does not extend out as far as that of an interest rate swap.
B) An interest rate swap is a more transactionally efficient instrument.
C) The liquidity of the interest rate swap market has grown since its beginning in 1981.
D) Forward contract are a more transactionally efficient instrument since their beginning in 1955.
Correct Answer:
Verified
Q22: _ is an agreement between two parties
Q23: The agreement is referred to as an
Q24: Which of the below statements is FALSE?
A)
Q25: Which of the below statements is FALSE?
A)
Q26: Buying a _ is equivalent to buying
Q28: A _ involves the sale of the
Q29: Which of the below statements is TRUE?
A)
Q30: In a _, the party that wants
Q31: The terms of an interest rate agreement
Q32: Which of the below statements is TRUE?
A)
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