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:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.

Office Furniture

Items designed for use in a work or office setting, including desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of an asset's cost to each year of its useful life.