Which of the Following Is One of the Main Factors

question 37

Multiple Choice

Which of the following is one of the main factors that determine the quoted fixed rates for swaps?

• A) The size of the notional amount
• B) The counterparties' default risk
• C) The time of the taxation year the swap deal is entered into
• D) The swap dealers' ability to add large spreads

---

Definitions:

Inheritance

Assets received from someone who has died, transferring wealth or obligations from the deceased to their legal heirs or beneficiaries.

Federal Governments

A system of government where power is divided between a national (federal) government and various regional governments.

Command Economy

A system of economy in which all determinations about the generation and distribution of products and services are made by the state or central authority.

Markets

Places or systems where buyers and sellers interact to trade goods, services, or resources.