Which of the Following Is NOT a Reason Financial Swaps

question 5

Multiple Choice

Which of the following is NOT a reason financial swaps have become popular contracts?

• A) Swaps provide a clever way of exploiting the theory of comparative advantage.
• B) Swaps exchange cash flows from two different investments and sometimes notional values as well.
• C) Swaps can be warehoused.
• D) Swaps provide a cheap way of transforming cash flows.
• E) A movement from a brokerage business to a dealership market allowed fast and efficient processing of swap agreements.

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Definitions:

Dependency

In psychology, refers to a reliance on substances, behaviours, or other individuals that affects one's mental or physical health.

Major Neurocognitive Disorders

Previously known as dementia, these disorders involve significant cognitive decline from a previous level of performance in one or more cognitive domains.

Age Increases

Refers to the natural, chronological advancement in age which is often associated with changes in physical, psychological, and social aspects of an individual's life.

Exponentially

At a rapidly increasing rate, where growth becomes quicker and more significant with each passing stage.