Which of the following is NOT a reason financial swaps have become popular contracts?
A) Swaps provide a clever way of exploiting the theory of comparative advantage.
B) Swaps exchange cash flows from two different investments and sometimes notional values as well.
C) Swaps can be warehoused.
D) Swaps provide a cheap way of transforming cash flows.
E) A movement from a brokerage business to a dealership market allowed fast and efficient processing of swap agreements.
Correct Answer:
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