In What Type of Swap Contract Is the Loan Principal

question 52

Multiple Choice

In what type of swap contract is the loan principal exchanged?

• A)All swap arrangements
• B)Fixed-for-floating swap
• C)Overnight indexed swaps
• D)Cross-currency swaps
• E)Credit default swaps

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Definitions:

Dwarf Planet

A celestial body that orbits the sun and has enough mass to assume a nearly round shape but has not cleared its orbital path of other debris.

Volcanically Inactive

Referring to a volcano that is not currently erupting and shows no signs of impending activity in the near future.

Tectonically Inactive

Refers to regions of the Earth's crust that are not currently experiencing significant tectonic movements, earthquakes, or volcanic activity.

Billion Years

A time scale used to describe events or processes that occur over extremely long periods, typically in the context of the age of the Earth or the universe, equivalent to 10^9 years.