1.The term interest rate swap
A. refers to a "single-currency interest rate swap" shortened to "interest rate swap"B.involves "counterparties" who make a contractual agreement to exchange cash flows at periodic intervalsC. can be "fixed-for-floating rate" or "fixed-for-fixed rate"D. All of the above
2.Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:
3.The primary reasons for a counterparty to use a currency swap are:
4.The size of the swap market is
5.Which combination of the following statements is true about a swap bank? (i) it is a generic term to describe a financial institution that facilitates swaps between counterparties(ii) it can be an international commercial bank(iii) it can be an investment bank(iv) it can be a merchant bank(v) it can be an independent operator
A. (i) and (ii)B. (i), (ii) and (iii)C. (i), (ii), (iii) and (iv)D. (i), (ii), (iii), (iv) and (v)6.A swap bank
In the swap market, which position potentially carries greater risks, broker or dealer?