What Is the Special Feature of an Off-Market Swap Arrangement

question 4

Multiple Choice

What is the special feature of an off-market swap arrangement?

• A)It involves special nonstandard considerations that must be negotiated between the parties.
• B)The swap is used to hedge against exchange rate risk from mismatched currencies on assets and liabilities.
• C)It involves additional financing costs resulting from the fixed-fixed currency swap.
• D)It involves an obligation to pay interest at a fixed or floating rate for payments representing the total return on a specified amount.
• E)FI receives the par value of the loan on default in return for paying a periodic swap fee.

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Definitions:

Product Itself

Refers directly to the tangible or intangible goods being offered or sold to consumers.

Product Liability Law

Legal principles that hold manufacturers, distributors, suppliers, and retailers accountable for any damages caused by defective or dangerous products.

Tort Law

An area of law that deals with civil wrongs and damages, not arising out of contractual obligations, that one party suffers at the hands of another.

Product Liability

The legal responsibility that manufacturers or sellers have to compensate for harm caused by defective or dangerous products.