All of the Following Are Factors That Directly Affect Swap

question 55

Multiple Choice

All of the following are factors that directly affect swap pricing,except:

• A) the availability of extra counterparties.
• B) the credit risk of the swap counterparty.
• C) the term structure of interest rates.
• D) current government regulation.

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Definitions:

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies.

Just-In-Time

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through timely procurement and shipment.

Prevention Costs

Costs incurred to prevent defects before they occur, including costs associated with design, training, and process control.

Appraisal Costs

Expenses associated with measuring, evaluating, or auditing products or services to ensure conformity to quality standards and performance requirements.