If You Have Three Years Left on a Five-Year Fixed

question 17

Multiple Choice

If you have three years left on a five-year fixed rate loan paying 2 percent quarterly,and you want to transform it into a floating rate loan using a swap,which of the following would be an appropriate method?

• A) Enter a five-year receive floating,and pay a fixed swap where the swap rate is 2 percent paid quarterly.
• B) Enter a five-year receive fixed,and pay a floating swap where the swap rate is 2 percent paid quarterly.
• C) Enter a three-year receive floating,and pay a fixed swap where the swap rate is 2 percent paid quarterly.
• D) Enter a three-year receive fixed,and pay a floating swap where the swap rate is 2 percent paid quarterly.
• E) Enter a four-year receive fixed,and pay a floating swap where the swap rate is 2 percent paid quarterly.

Understand the concept of resistance, transference, and countertransference in the therapeutic process.

Recognize the significance of early childhood experiences and their impact on personality development according to object relations theory.

Describe the humanistic perspective on therapy and its goals.

Explain the role and influence of the collective unconscious in Jungian psychology.

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Definitions:

Triangle Arbitrage

A riskless profit strategy that takes advantage of discrepancies in exchange rates in different markets by conducting a series of conversions among three currencies.

Currency Market

Also known as the foreign exchange market (Forex), it's a decentralized global market where currencies are traded, determining the foreign exchange rates for every currency.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Direct Exchange Rate

The amount of domestic currency required to buy one unit of a foreign currency.