Growth in the interest rate swaps market has occurred as a consequence of:
A) companies looking for ways to manage risk or lower total funding costs.
B) swaps creating a link between segmented markets.
C) swaps minimising the costs of regulation and tax laws.
D) all of the given answers.

Question

Quizplus · Accepted Answer

All of the given answers are correct. Interest rate swaps provide companies with a way to manage their risk exposure and potentially lower their funding costs. Additionally, swaps create a link between segmented markets, allowing participants to access funding and investment opportunities they might not otherwise have had. Finally, swaps can help minimize the costs of regulation and tax laws by providing a more efficient way to manage financial risk.

Growth in the Interest Rate Swaps Market Has Occurred as a Consequence