The economic benefits associated with swaps may derive from

Question

Quizplus · Accepted Answer

All three options mentioned in the question may contribute to the economic benefits of swaps. A) Legal restrictions on spot and forward foreign exchange transactions may make swaps the advantageous route for foreign exchange transactions. B) Different perceptions of risk and creditworthiness of the two parties involved in the swap may lead to a more favorable pricing of the swap agreement. C) The appeal or acceptability of one borrower to a certain class of investor may result in more favorable terms for the swap. Therefore, option D is the correct choice which covers all the possible benefits associated with swaps.

The Economic Benefits Associated with Swaps May Derive from