The Following Are All Advantages of Having an Equity Swap

question 50

Multiple Choice

The following are all advantages of having an equity swap market except

• A) These agreements allow investors to take advantage of overall price movements in a specific country's stock market.
• B) Creating a direct equity investment in a foreign country may be difficult for some investors where it is prohibited by law.
• C) These agreements eliminate the need for a counterparty because they are traded on the NYSE.
• D) An investment fund wanting to accumulate foreign index returns denominated in their domestic currency may not be legally permitted to obtain sufficient exchange-traded derivative contracts to hedge a direct equity investment.
• E) All of the above are advantages of an equity swap market

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Definitions:

Living Wage

A wage sufficient for a worker and their family to live on, covering basic needs such as housing, food, and healthcare, aimed at promoting fair labor practices.

American Standard

Often refers to a set of guidelines or specifications used in the United States for various products, practices, or measurements to ensure quality, safety, and efficiency.

New Immigrants

Wave of newcomers from southern and eastern Europe, including many Jews, who became a majority among immigrants to America after 1890.

Close-Knit Communities

Social groups characterized by strong bonds, frequent interactions, and a high degree of solidarity among members.