Which of the Following Is NOT a Reason for Entering

question 24

Multiple Choice

Which of the following is NOT a reason for entering a plain vanilla swap?

• A)To provide a cheaper method of raising funds than borrowing in the preferred market.
• B)To achieve a lower overall borrowing rate.
• C)To hedge an interest rate exposure.
• D)To hedge an exchange rate exposure.
• E)None of these.

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Definitions:

Customer Responsibility

The obligation of customers to act in a manner that respects the terms of service, policies, and ethical considerations of transactions with businesses.

Socially Responsible Behaviour

Conduct by individuals or organizations aimed at benefiting society, often beyond legal or regulatory requirements.

Restrictive Government Regulation

Refers to laws and policies imposed by governmental bodies that restrict, limit, or control certain activities or behaviors of individuals or organizations.

Public Image

The perception or reputation of an individual or organization as seen by the public and shaped through media, actions, and communications.