Which Statement Regarding Entering into or Ending a Swap Contract

question 11

Multiple Choice

Which statement regarding entering into or ending a swap contract is INCORRECT?

• A) A swap may be initiated by a phone-based conversation or direct negotiation.
• B) A swap may be initialed via a web-based trading platform.
• C) A swap may be initiated by running an auction to select counterparties.
• D) A swap,once entered,must be held until maturity.
• E) A swap may be closed through a buyout.

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Definitions:

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Billionaires

Individuals whose net worth or wealth is equal to or exceeds one billion units of a currency.

Income

The financial earnings received by an individual or entity, typically measured over a set period of time, from work (wages) or investments (interests, dividends).

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Money payments made by the government to individuals without any goods or services being exchanged, intended to redistribute income and support welfare.