Swaps Differ from Futures and Options in All of the Following

question 21

Multiple Choice

Swaps differ from futures and options in all of the following ways EXCEPT:

• A)intended to reduce the risk faced by participants.
• B)more flexibility.
• C)more privacy.
• D)less regulation.

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Definitions:

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.

Free-riders

Individuals who benefit from resources, goods, or services without paying for them, often seen in public goods and collective risk scenarios.

Private Markets

are markets where transactions are conducted directly between two parties without being publicly traded on an exchange.