Which of the Following Is an Advantage of Having Swap

question 52

Multiple Choice

Which of the following is an advantage of having swap dealers?

• A)They serve the function of taking the opposite side of each transaction in order to keep the swap market liquid.
• B)They reduce the search costs of finding counterparties having mirror image financing requirement.
• C)They generally guarantee swap payments over the life of the contract.
• D)They incur any costs associated with the default by replacing the defaulting party on the same terms as the original swap.
• E)All of the above.

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Definitions:

Phobias

Severe, unreasonable fear directed towards particular objects, activities, or situations resulting in evasion actions.

Panic Disorder

A psychiatric disorder characterized by sudden, repeated attacks of intense fear and discomfort that reaches a peak within minutes.

Fear of Snakes

An intense, irrational fear of snakes, also known as ophidiophobia, which can cause significant anxiety and avoidance behavior.

Phobia

An irrational and excessive fear of an object, place, situation, feeling or animal that poses little to no actual danger.