A Key Use of Interest-Rate Swaps Is To

question 51

Multiple Choice

A key use of interest-rate swaps is to:

• A) eliminate risk for both parties involved in the transaction.
• B) earn the fees for constructing the swaps.
• C) provide a hedge against interest-rate risk.
• D) manage government revenues.

---

Definitions:

Legislators

Individuals elected to make laws and represent the interests of the public in a legislative body.

Well-being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and social domains.

Safety Concerns

Issues or situations that may pose a risk of harm to individuals or communities.

Neutral Location

A place agreed upon by all parties involved where no one has a particular advantage or authority.