24-37 Which of the Following Is an Advantage of Having

question 86

Multiple Choice

24-37 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:

Gyromagnetic Ratio

A constant for a given nucleus that relates its magnetic moment and angular momentum, important in NMR and MRI.

Proton Resonance

A nuclear magnetic resonance (NMR) technique used to determine the structure of organic compounds by observing the behavior of hydrogen nuclei in a magnetic field.

O-Chlorophenol

A type of chlorophenol with the chlorine atom bonded to the ortho position (adjacent to) of the hydroxyl group on the benzene ring.

Energy Difference

Refers to the change in energy between the reactants and products in a chemical reaction, or between different states of a molecule.