A swap is an arrangement for two counterparties to:
A) exchange cash flows over time.
B) permit fluctuation in interest rates.
C) help exchange markets clear.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Swaps are financial agreements where two counterparties agree to exchange cash flows over a period of time, typically to manage interest rate or currency exposure.

A Swap Is an Arrangement for Two Counterparties To