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)temporarily exchange fixed assets.
E)insure natural catastrophes.

Question

Quizplus · Accepted Answer

A swap is an agreement between two parties to exchange cash flows over time. This can include exchanging fixed or floating interest rates, currencies, or other financial assets with the goal of minimizing risk or achieving other objectives.

A Swap Is an Arrangement for Two Counterparties To