A shortcoming of swaps that has led to the domination of the swaps market by large firms and financial institutions is the
A) lack of privacy.
B) need to assess creditworthiness.
C) desire for more flexibility.
D) limited size of the market.

Question

Quizplus · Accepted Answer

The need to assess creditworthiness is a shortcoming of swaps as it requires a significant amount of resources and expertise, which may be out of reach for small firms and individual investors. This has led to the domination of the swaps market by large firms and financial institutions who have the resources and expertise to perform credit assessments.

A Shortcoming of Swaps That Has Led to the Domination