Which of the Following Is Not True About Interest Rate

question 81

Multiple Choice

Which of the following is not true about interest rate swaps?

• A) Payments are based on a notional principal.
• B) Floating rate payers profit if interest rates fall.
• C) Payments can be quarterly as well as semi-annually.
• D) Parities exchange debt obligations.
• E) Default risk is a possibility in the swaps market.

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Definitions:

Buyer's Needs

The requirements or demands of a consumer that influence their purchasing decisions, including functionality, price, convenience, and status.

Assumptive Close

A sales technique where the salesperson assumes the customer has decided to make a purchase and proceeds with steps to finalize the sale, often leading to a sense of inevitability about the transaction.

Long-Term Customers

Clients or buyers who have been purchasing products or services from a business for an extended period, showing loyalty.

Complimentary Close

A polite phrase used to end a letter or email, such as "Best regards" or "Warmly," before the sender's signature.