Finance companies participate in the ____ market to reduce interest rate risk.

Name: Finance companies participate in the ____ market to reduce interest rate risk.
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Question

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Finance companies participate in the swap market to reduce interest rate risk by entering into swap agreements, which allow them to exchange variable interest rate payments for fixed rate payments, or vice versa, thus managing their exposure to fluctuations in interest rates.

Finance Companies Participate in the ____ Market to Reduce Interest