For an Ordinary Interest Rate Swap Already in Place,if Counterparty

question 65

Multiple Choice

For an ordinary interest rate swap already in place,if counterparty A's obligation for one year is $100 000 and counterparty B's obligation is $120 000:

• A) counterparty A will pay counterparty B $20 000
• B) counterparty A will pay counterparty B $100 000
• C) counterparty B will pay counterparty A $20 000
• D) counterparty B will pay counterparty A $120 000

---

Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or other factors.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping, reflecting the inverse relationship between price and demand.

Internet-Related Firms

Companies whose primary business model is based on internet technologies, services, or platforms.

Market Dominates

When a single company or entity has a large enough share to control or influence the market terms, prices, and conditions significantly.