If a US Institution in a Forward Swap Would Like to Lock

question 44

Multiple Choice

If a U.S. institution in a forward swap would like to lock in the fixed rate that it will pay when the swap period begins, it is probably concerned that interest rates will ____; the counterpartyis likely adversely affected by ____ interest rates.

• A) increase; increasing
• B) increase; declining
• C) decrease; declining
• D) decrease; increasing
• E) none of the above

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Definitions:

Organic

Pertains to compounds containing carbon and typically found in living systems; also refers to food produced without the use of synthetic pesticides or fertilizers.

Gestalt Therapy

A style of psychotherapy that underlines the significance of self-responsibility while focusing on the client's present moment experiences, the bond between the client and therapist, the impact of a person's surroundings and social life, and the personal adjustments made in light of their unique situations.

Empty Chair

A therapeutic technique in which a client engages in a dialogue with an absent person or parts of themselves while using an empty chair to facilitate the conversation.

Wealth

A measure of the value of all the assets of worth owned by a person, community, company, or country.