Which One of the Following Statements Is Correct for an Interest

question 47

Multiple Choice

Which one of the following statements is correct for an interest rate swap?

• A) There is an exchange of loan contracts between counterparties.
• B) There is no exchange of principal between counterparties.
• C) There is an exchange of currencies between counterparties.
• D)There is no exchange of cash between counterparties.

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Definitions:

Substitute

A person or thing acting or serving in place of another, often temporarily or as an alternative.

Deposition

A deposition involves a live person being questioned under oath by an attorney who is party to the proceeding and takes place prior to the case going before the judge (and jury).

Under Oath

A legal condition whereby an individual promises to tell the truth in a court of law or other legal proceeding.

Attorney

A professional who is qualified to offer advice about the law or represent someone in legal matters.