Swap Transactions Are Only Used to

question 41

Multiple Choice

Swap transactions are only used to

• A) hedge against upward interest rate movements.
• B) hedge against downward interest rate movements.
• C) speculate.
• D) none of the above

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Definitions:

Personal Defense

Strategies or actions taken by an individual to protect themselves against harm or legal accusations.

Antedated Check

A check written with a date earlier than the date on which it was actually written.

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.

Instrument Overdue

Refers to a financial instrument, like a check or promissory note, that has not been paid or honored by its due date.