A Swap Arrangement Where the Floating Payment Is the Average

question 38

Multiple Choice

A swap arrangement where the floating payment is the average cash rate over the swap term is called:

• A)a credit default swap
• B)a fixed-for-floating interest rate swap
• C)an overnight indexed swap
• D)a currency swap
• E)a plain vanilla interest rate swap.

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Definitions:

John Watson

An influential figure in the field of psychology, known for his work in developing the theory of behaviorism.

Psychodynamic

Psychodynamic refers to a psychological perspective that analyzes how human behavior springs from unconscious drives and conflicts.

Cognitive Model

An approach in psychology that explains human behavior by understanding thought processes.

Learning/Behavioral Approach

The Learning/Behavioral Approach is a perspective in psychology that emphasizes the importance of observable behaviors, and suggests that behaviors are learned through interactions with the environment, particularly through conditioning.