Examples of "Single-Currency Interest Rate Swap" and "Cross-Currency Interest Rate

question 47

Multiple Choice

Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:

• A)fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating-rate debt obligations for fixed-rate interest payments of the other counter party.
• B)fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency for the debt service obligations of the other counter party denominated in another currency.
• C)both a and b
• D)none of the above

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Definitions:

Globalization

The act of connecting and merging between individuals, businesses, and state entities globally, frequently motivated by international trade and investment, and supported by information technology.

Financialization

The increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, affecting the management and control of companies and even governments.

Information Technology

The use of computers, networking, and other physical devices and processes to create, process, store, secure, and exchange all forms of electronic data.

"The World is Flat"

A book by Thomas L. Friedman that discusses globalization and its impact on the world economy, proposing that technological advancements have leveled the competitive playing fields between industrial and emerging market countries.