One Advantage of Using Swaps to Eliminate Interest-Rate Risk Is

question 40

Multiple Choice

One advantage of using swaps to eliminate interest-rate risk is that swaps

• A) are less costly than futures.
• B) are less costly than rearranging balance sheets.
• C) are more liquid than futures.
• D) have better accounting treatment than options.

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Definitions:

Achievement Orientation

A focus on setting and meeting high standards and achievements, whether personal or professional.

Performance Orientation

An aspect of organizational culture focusing on outcomes and results, emphasizing the achievement of goals and standards of excellence.

External Locus

A belief system where individuals perceive their successes or failures to be the result of external forces or the environment.

Control

The ability to direct, manage, or govern over oneself, other people, or situations to achieve a desired outcome.