The Real Exposure of an Interest or Currency Swap Is

question 11

True/False

The real exposure of an interest or currency swap is not the total notional principal, but the mark-to-market values of differentials in interest or currency interest payments since the inception of the swap agreement.

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Definitions:

ICC

The Interstate Commerce Commission, established in 1887 as the first Federal agency monitoring the operations of railroads to ensure fair rates and to regulate other aspects of their service.

Eugenicists

Advocates of eugenics, a movement aimed at improving the genetic composition of the human race through selective breeding and other methods.

Mentally Defective

An outdated and offensive term historically used to describe individuals with mental disabilities or impairments; contemporary language favors person-first terms like "people with mental disabilities."

Criminally Inclined

Persons who have a tendency or predisposition to engage in illegal activities or behaviors that violate laws.