In a __________ Swaps, Two Parties Exchange Floating Interest Payments

question 17

Multiple Choice

In a __________ swaps, two parties exchange floating interest payments based on different reference rates.

• A) basis
• B) coupon
• C) notional
• D) forward rate

---

Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than competitors, leading to more efficient international trade.

Capital Goods

Long-term assets acquired by businesses to create goods and services; these include machinery, tools, and buildings.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Skilled Workers

Individuals who have specialized training or expertise in a particular job or industry, often requiring formal education or apprenticeship.