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Mary creates a t-shirt design that expresses her support for a presidential candidate and distributes t-shirts to all her friends. The t-shirts are an example of
Currency Swap
A financial agreement to exchange currency between two parties at a set rate, often used to hedge currency risk.
Interest Rate Swaps
A financial derivative contract between two parties to exchange interest rate payments on a specified principal amount, typically involving the swap of fixed for variable interest rates.
Variable Rate
A type of interest rate that changes over time, usually in connection with a specific index or benchmark rate.
Index
An index is a statistical measure or indicator that tracks the performance of a basket of assets, stocks, or other financial instruments, often used as a benchmark for investment performance.
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