When a Financial Intermediary Is Involved as an Interest Rate

question 11

Multiple Choice

When a financial intermediary is involved as an interest rate swap counterparty,it often seeks to arrange an offsetting swap called a:

• A) counterparty swap.
• B) simultaneous swap.
• C) synchronised swap.
• D) matched swap.

---

Definitions:

Casual Acquaintances

Relationships or connections between people who know each other but do not have a deep or close friendship.

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, thereby having a financial stake and certain rights within the company.

Corporation

A legal entity that is distinct and separate from its owners, which can own property, incur liabilities, and is subject to taxation.

Cumulative Voting

A voting system in corporate governance that allows shareholders to concentrate their votes on a single candidate, enhancing minority shareholders' representation.