Which of the Following Is a Reason Why Financial Institutions

question 24

Multiple Choice

Which of the following is a reason why financial institutions engage in interest rate swaps?

• A)to reduce interest rate risk
• B)to act as an intermediary
• C)to act as a dealer in swaps
• D)All of these are reasons why financial institutions engage in swaps.

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Definitions:

Manual Systems

A system or process that involves human intervention rather than automated or electronic means.

Accounts Receivable

The money owed to a business or practice for services provided or goods sold on credit but not yet paid for by clients or customers.

Charge Slip

A document or form used to record the services rendered and the charges incurred for a patient in a medical or dental practice.

Debit Balance

Occurs when the amount paid is less than the total due.