The Principal in an Interest Rate Swap Is

question 123

Multiple Choice

The principal in an interest rate swap is:

• A)Always transferred from the originator to the counterparty of the swap.
• B)Is usually held by a clearinghouse to guarantee payment.
• C)Usually borrowed from a third party.
• D)Is not borrowed, lent, or exchanged.It just serves as the basis for the calculation of cash flows.

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Definitions:

Circulation

The movement of blood throughout the body, facilitated by the heart and blood vessels, which provides oxygen and nutrients to tissues.

Hemovac Drain

A closed wound drainage system used postoperatively to remove blood and fluids from a surgical site, promoting healing.

Drainage Tubing

Tubes used in medical settings to remove fluid or air from areas within the body, facilitating recovery.

Evacuator

A device or apparatus designed to remove fluids, gases, or other substances from a body cavity, wound, or other source, typically used in medical and dental procedures.