Which of the Following Would Be Referred to as an Equity

question 16

Multiple Choice

Which of the following would be referred to as an equity swap?

• A) An exchange of the return from an equity index for a fixed rate of interest
• B) An exchange of a long position in one stock for a long position in another stock
• C) An exchange of a short position in one stock for a short position in another stock
• D) None of the above

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Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, serving as a comprehensive measure of economic activity.

Net Domestic Product

A measure of a country's economic output that accounts for depreciation, representing the net value of all goods and services produced domestically.

Depreciation

The decrease in an asset's worth over time, usually caused by aging or becoming outdated.

Net Domestic Product

Measures the total value of all goods and services produced within a country's borders in a specific period, after accounting for depreciation.