Why Might an Individual or Organization Be Willing to Swap

question 72

Multiple Choice

Why might an individual or organization be willing to swap fixed-rate loans for floating-rate loans?

• A)They may perceive that interest rates are ready to increase
• B)Their cash flows may vary directly with interest rates
• C)Floating rates are lower than fixed rates
• D)They may be able to postpone the payment of principal

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Definitions:

Role-Playing

Involves conforming to existing performance expectations.

Role-Making

Is the creative process by which individuals generate role expectations and performances.

Role Strain

The stress or tension experienced by an individual when facing difficulty in fulfilling multiple requirements of the same social role.

Role Performance

How individuals enact the roles they occupy in society, including the behaviors and actions associated with those roles.