By acting as swap dealers, financial institutions reduce the search costs of parties requiring swap contracts.

Name: By acting as swap dealers, financial institutions reduce the search costs of parties requiring swap contracts.
Brand: Quizplus
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Question

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By serving as intermediaries between parties seeking swap contracts, financial institutions reduce the time and effort that each party would otherwise have to devote to finding a matching counterparty. This results in lower search costs for all parties involved.

By Acting as Swap Dealers, Financial Institutions Reduce the Search