Interest rate swap volume is greater than currency swap volume because virtually ever business is exposed to interest rate risk.

Question

Quizplus · Accepted Answer

Interest rate risk is inherent in most businesses as they have to borrow money or invest surplus cash. Currency risk, on the other hand, only affects those businesses that operate across different countries or have cross-border transactions. Therefore, interest rate swaps are more commonly used and have a higher volume compared to currency swaps.

Interest Rate Swap Volume Is Greater Than Currency Swap Volume