A Dealer Has Indicated His Intention of Assigning an Interest

question 307

Multiple Choice

A dealer has indicated his intention of assigning an interest rate swap to a third party soon after transacting that swap. When about to execute an assignment

• A) The dealer is entitled to provide the name of the original counterparty to the assignee.
• B) The dealer is entitled to provide the name of the assignee to the original counterparty.
• C) The dealer should seek the permission of the assignee before releasing the name to the original counterparty.
• D) The dealer should seek the permission of the original counterparty before releasing the name to the assignee.

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Definitions:

Production Cost

The direct and indirect expenses incurred to manufacture goods or provide services.

Equivalent Units

A concept in cost accounting used to denote the amount of work done on incomplete units, expressed in terms of fully completed units.

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.

Percentage of Completion

A method of accounting for long-term contracts in which income is recognized as a proportion of work completed at certain stages.