Which of the following is false?
A)Swaps allow two parties to hedge interest rate risk for a long period of time, often up to say 15 years.
B)Interest rate swaps allow two parties to trade interest rate streams so that inflows more closely match outflows.
C)A fall in interest rates will hurt an intermediary that is holding fixed rate assets and variable rate liabilities.
D)Swaps originated in 1982.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is false?
A)Swaps allow two parties to hedge interest rate risk for a long period of time, often up to say 15 years.
B)Interest rate swaps allow two parties to trade interest rate streams so that inflows more closely match outflows.
C)A fall in interest rates will hurt an intermediary that is holding fixed rate assets and variable rate liabilities.
D)Swaps originated in 1982.

Which of the Following Is False