Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)An interest rate that adjusts to current market conditions is called a 'floating rate'.
• B)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.
• C)Corporations use interest rate swaps routinely to alter their exposure to interest rate fluctuations.
• D)The value of a swap, while initially zero, will fluctuate over time as interest rates change.

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