The most basic type of interest rate swap is the:
A)fixed for floating rate swap
B)exchange-rated swap
C)LIBOR for prime rate swap
D)Interest rate rights offering

Question

Quizplus · Accepted Answer

The most basic type of interest rate swap is a fixed for floating rate swap. In this type of swap, one party agrees to pay a fixed interest rate to another party while receiving a floating interest rate in return. This allows both parties to manage their interest rate risk and potentially reduce their borrowing costs. B, C, and D are not accurate descriptions of basic interest rate swaps.

The Most Basic Type of Interest Rate Swap Is The