Interest rate swaps:
I.benefit either the buyer or the seller,but not both.
II.are often used in conjunction with a currency swap.
III.are commonly used in business.
IV.can be used to change the index which determines the variable rate on a firm's debt.
A)I and III only
B)II and IV only
C)II, III, and IV only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Interest rate swaps can benefit both the buyer and the seller by allowing each party to manage their interest rate exposure more effectively. They are indeed often used in conjunction with currency swaps, are commonly used in business to manage interest rate risks, and can be used to change the index determining the variable rate on a firm's debt.

Interest Rate Swaps: I.benefit Either the Buyer or the Seller,but Not Both