When Two Parties Exchange Their Respective Interest Payments Associated with Existing

question 95

Multiple Choice

When two parties exchange their respective interest payments associated with existing debt borrowed in the capital markets,this is called a/an:

• A) interest exchange.
• B) financial switch.
• C) swap.
• D) financial transfer.

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Definitions:

RMBCA

The Revised Model Business Corporation Act (RMBCA) is a set of model laws prepared by the American Bar Association to provide a standard for the governance of corporations.

Pre-incorporation Subscription

An agreement by an investor to purchase shares in a corporation that is yet to be formed, contingent upon the actual incorporation of the company.

Revoked

The action of withdrawing, cancelling, or annulling something previously granted, such as a license, privilege, or legal right.

Single Person

A single person typically refers to an individual not in a marital or committed relationship, often used in demographic and legal contexts.