Which of the Below Statements Is TRUE

question 64

Multiple Choice

Which of the below statements is TRUE?

• A) The convention that has evolved for quoting swaps levels is for a swap dealer to set the floating rate greater than the index and then quote the fixed rate that will apply.
• B) The swap spread is determined by different factors than what drive the spread over Treasuries on instruments that replicate a swap's cash flows.
• C) Given that a swap is not a package of futures/forward contracts, the shorter-term swap spreads respond directly to fluctuations in Eurodollar CD futures prices.
• D) There are three general types of transactions in the secondary market for swaps. These include (1) a swap reversal, (2) a swap sale (or assignment), and (3) a swap buy-back (or close-out or cancellation).

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Definitions:

Premise Control

A security measure that ensures the safety and integrity of physical spaces or properties.

Marketing Mix

The set of actions, or tactics, that a company uses to promote its brand or product in the market, traditionally defined as the four Ps: Product, Price, Place, and Promotion.

SWOT Analysis

A strategic planning tool that involves evaluating the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Market Potential

An estimate of the maximum total sales of a product or service that could be achieved within a specific market segment over a certain time period.