The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called _________?
Correct answer: B. interest rate swaps
- A. float-fixed swaps
- B. interest rate swaps
- C. indexed swaps
- D. counter party swapsHire An Accountant
Explanation
An interest rate swap exchanges one interest-payment structure for another, commonly fixed-rate payments for floating-rate payments. The other options are not the standard name for this arrangement.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The situation in which the large portion of majority is borrowed from the broker of investor is classified as ___________?
In interest rate swap transaction, the party who pays the floating payments of interest is considered as __________?
When the price of underlying asset increases then the good option is __________?
The inverse relationship between price change and interest rate change is represented by ___________?
The type of bond for which the bonds present value is greater than bonds face value is classified as ____________?
The interest rate that investors receive on financial security to calculate fair value of security is classified as ___________?