The Principal in an Interest Rate Swap Is

question 72

Multiple Choice

The principal in an interest rate swap is:

• A) always transferred from the originator to the counterparty of the swap.
• B) is usually held by a clearinghouse to guarantee payment.
• C) usually borrowed from a third party.
• D) is not borrowed, lent, or exchanged. It just serves as the basis for the calculation of cash flows.

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Definitions:

Age Discrimination

Unfair treatment of employees or job applicants based on their age, typically targeting older individuals.

Employment Act

Legislation that outlines the rights and responsibilities of employees and employers, including working hours, wages, and working conditions.

Equal Pay Act

A labor law that prohibits gender pay discrimination, requiring equal pay for equal work performed by men and women.

Sex Discrimination

involves treating someone unfavorably because of their sex or gender, which is prohibited under various laws.