One Advantage of Using Swaps to Eliminate Interest-Rate Risk Is

question 40

Multiple Choice

One advantage of using swaps to eliminate interest-rate risk is that swaps

• A) are less costly than futures.
• B) are less costly than rearranging balance sheets.
• C) are more liquid than futures.
• D) have better accounting treatment than options.

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Definitions:

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires.

Decisions

The process of making choices or conclusions after consideration of information and different alternatives.

Recognizes

The act of acknowledging or identifying something or someone as having a particular status or quality.

Personality Formation

Personality formation is the development of an individual's distinct personality traits and characteristics, influenced by genetic, environmental, and social factors.