Which of the Following Is Not a Reason Why Financial

question 59

Multiple Choice

Which of the following is not a reason why financial institutions engage in interest rate swaps?

• A) to reduce interest rate risk
• B) to act as an intermediary
• C) to act as a dealer in swaps
• D) All of the above are reasons why financial institutions engage in swaps.

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Definitions:

Middle Passage

The sea voyage that transported enslaved Africans across the Atlantic Ocean to the Americas as part of the transatlantic slave trade.

Ship Conditions

Refers to the state and quality of living or transportation conditions aboard sea vessels, often historically associated with the spread of disease and poor treatment of passengers.

Bonding Factor

An element or condition that causes individuals or groups to identify with one another, creating a sense of solidarity and cohesion.