The type of swap that is in the largest segment of the global swap market is
A)a commodity swap.
B)a credit swap.
C)a currency swap.
D)an equity swap.
E)an interest rate swap.

Question

Quizplus · Accepted Answer

Interest rate swaps make up the largest segment of the global swap market. They involve two parties exchanging interest rate payments on a notional amount of principal, typically to manage or mitigate interest rate risk. This can be done by swapping between fixed and floating interest rates or between different currencies.

The Type of Swap That Is in the Largest Segment