The largest two categories of swaps are

Question

Quizplus · Accepted Answer

According to the International Swaps and Derivatives Association (ISDA), the two largest categories of swaps are interest rate swaps and currency swaps. Therefore, option C is the correct answer. Option A is incorrect because while credit risk is a significant consideration in swaps, it is not one of the two largest categories. Option B is incorrect because commodity swaps are a relatively small subset of the overall swaps market. Option D is also incorrect because equity swaps are a smaller category when compared with interest rate and currency swaps.

The Largest Two Categories of Swaps Are