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Worksheetsswaps
Total questions: 10
Worksheet time: 5mins
______ is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments.
swaps
derivatives
forward
future
The main purpose of tradind in swaps is
risk management
high return
reasonable return
risky with high return
swaps are generally regulated by
commodity forward trading commisssion
commodity option trading commisssion
commodity swaps trading commisssion
commodity futures trading commisssion
which of the following is feature of swaps?
Barter
Arbitrage driven
liability driven
all of these
one of the disadvantage of swaps is
hedging risk
borrowing at lower cost
counter party risk
none of these
______ is a security with a price that is dependent upon or derived from one or more underlying assets.
forward
future
derivative
swaps
swaps can be traded in both OTC and stock exchange
true
false
swaps can be traded in
OTC
stock exchange
choose one of the advantage of swaps
early termination
additional income
information network
lack of liquidity
The outstanding swaps create substantial ________ exposure that could create serious effect on the financial stability
counter party
risk
hedging
none of these
