Which of the Following Statements Regarding Interest Rate Swaps Is

question 66

Multiple Choice

Which of the following statements regarding interest rate swaps is incorrect?

• A) The principal involved is called notional.
• B) Parties involved borrow funds where they have a comparative advantage.
• C) The two parties in the swap always share equally the cost of the spread that the intermediary receives.
• D) The financial intermediary involved often engages in an offsetting swap, known as a matched swap.

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