Up-Town Markets Exchanged Their Floating-Rate Payments with Downtown Markets' Fixed-Rate

question 3

Multiple Choice

Up-Town Markets exchanged their floating-rate payments with Downtown Markets' fixed-rate payments.This exchange is referred to as a

• A)gilt exchange.
• B)forward rate.
• C)cross-rate.
• D)spot exchange.
• E)swap.

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Definitions:

Corporation

A legal entity created by individuals, stockholders, or shareholders, with rights and liabilities separate from those of the individuals involved.

NASDAQ

An international digital platform for the trade of securities, and also serves as the standard index for technology stocks in the U.S.

Financial Market

A marketplace where buyers and sellers engage in trading financial instruments such as stocks, bonds, commodities, and currencies.

OTC Market

Over-the-counter market where securities are traded directly between parties without the oversight of an exchange.