The Following Is NOT a Characteristic Feature of a Plain

question 3

Multiple Choice

The following is NOT a characteristic feature of a plain vanilla interest rate swap:

• A) cash flows in the same currency
• B) counterparty risk
• C) exchange of principal at the beginning and at the end
• D) a net payment by one of the parties
• E) notional principal

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Definitions:

Suitability

The appropriateness or fitness of a person or thing for a specific purpose or situation, often assessed through the lens of qualifications, capabilities, and circumstances.

Environmental Conditions

The various external factors and contexts, such as weather, climate, and natural settings, that can affect activities, well-being, or performance.

Human Resource Plan

A firm’s overall plan to fill existing and future vacancies, including decisions on whether to fill internally or to recruit from outside.

Legal Changes

Modifications or adjustments made to existing laws or regulations within a legal framework.