As a(n) ____ to an interest rate swap, a financial institution simply arranges a swap between two parties.

Question

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A broker is someone who arranges transactions between two parties for a fee. In the context of an interest rate swap, a financial institution can act as a broker and arrange the swap between two parties who want to exchange their interest rate payment streams. The other options, ultraparty and none of the above, are not commonly used terms in this context. Counterparty is a term often used in finance to refer to the other party involved in a transaction, but it does not specifically imply the role of arranging a swap as a broker would.

As A(n) ____ to an Interest Rate Swap, a Financial