Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A)Corporations use interest rate swaps routinely to alter their exposure to interest rate fluctuations.
• B)The value of a swap,while initially zero,will fluctuate over time as interest rates change.
• C)An interest rate that adjusts to current market conditions is called a floating rate.
• D)When interest rates rise,the swap's value will rise for the party receiving the fixed rate;conversely,it will fall for the party paying the fixed rate.

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Definitions:

Gross Income

The total amount of income earned by an individual or entity before any deductions or taxes are applied.

Earned Income Credit

A refundable tax credit for low to moderate-income working individuals and families, particularly those with children.

Qualifying Child

A dependent of a taxpayer who meets specific IRS criteria for age, relationship, residency, and support for tax benefits.

Retirement Savings

Funds accumulated for retirement, often involving tax advantages, through vehicles such as 401(k) plans, IRAs, or annuities.