If an FI Is a Counterparty to a Swap Arrangement

question 13

True/False

If an FI is a counterparty to a swap arrangement, it must record the notational value of the swap as the market value.

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Definitions:

Modality

The characteristic of data or signals that refers to the method or medium of communication or expression.

Skewed

Describes a distribution that is not symmetrical, with data points that are disproportionately clustered at one end or the other.

Symmetrical

In statistics, refers to a shape or distribution that is the same on both sides of the center.

Positively Skewed

A distribution shape where the tail is longer on the right side, indicating that there are a number of exceptionally high values.