While both the international and AUD swap markets have matured,growth may still be expected.Which of the following factors is a determinant in the future growth of the swaps markets?
A) Periodic nervousness from a lack of clear direction of interest rates
B) Speculative trading transactions to take advantage of future price movements
C) Development of new, sophisticated products to hedge interest rate and currency risk
D) All of the given choices

Question

Quizplus · Accepted Answer

All of the given choices are determinants of the future growth of the swaps markets. Periodic nervousness from a lack of clear direction of interest rates can drive demand for hedging through swaps, speculative trading transactions can drive liquidity, and the development of new sophisticated products can increase the overall size of the swaps markets.

While Both the International and AUD Swap Markets Have Matured,growth