Which One of the Following Statements Is Most Accurate About

question 3

Multiple Choice

Which one of the following statements is most accurate about financial markets that provide swaps today?

• A) No longer are corporations tied to the financial markets of their country of residence.
• B) Banks do not like swaps because the associated cash flows are just like those of bonds.
• C) The result is that some companies have more difficulty is issuing debt in one currency that in other currencies.
• D) Because the cash flows of swaps are not like the cash flows of bonds, banks find it easy to offset their exposures in long-term forward contracts.

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