An Interest Rate Swap with Both Sides Paying a Floating

question 16

Multiple Choice

An interest rate swap with both sides paying a floating rate is called a

• A)plain vanilla swap
• B)two-way swap
• C)floating swap
• D)spread swap
• E)basis swap

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Definitions:

Yerkes-Dodson Law

A theory suggesting that there is an optimal level of arousal for performance, and that too much or too little arousal can adversely affect task performance.

Task Difficulty

The level of challenge presented by a task, which can influence a person's performance and effort required to complete it.

Stimulus Motives

Drives or urges stemming from external sources that motivate behavior to satisfy a need or achieve a goal.

Bored

A state of feeling disinterested, restless, or unengaged due to a lack of stimulation or interest in the current activity or surroundings.