Which of the Following Statements About Diff Swaps Is True

question 57

Multiple Choice

Which of the following statements about diff swaps is true?

• A)they involve interest payments in separate currencies
• B)they are based on the difference between interest rates in two countries
• C)they are based on the difference between interest rates of different maturities
• D)the notional amount reduces throughout the life of the swap
• E)the notional amount increases throughout the life of the swap

---

Definitions:

IFRS 9

Financial Instruments, a segment of the International Financial Reporting Standards that addresses the accounting for financial instruments, providing guidance on classification, measurement, impairment, and hedging.

Unrealized Gains And Losses

Increases or decreases in the value of investments or other assets that are not yet sold, thus not officially recorded as income or loss.

Equity Investments

Investments in shares of other companies that grant the holder ownership interests or stakes in the entities.

ASPE

Accounting Standards for Private Enterprises; a set of accounting practices and principles for private companies in Canada.