1) Interest rate swaps exchange the interest payments of two debt obligations in different currencies. T or F.

2) Currency swaps exchange the interest payments of two debt obligations for which the interest rates are both fixed. T or F.

3) The size of an interest rate and currency swap is determined by their------------------.

4) A swap bank:

a. facilitates swaps between counterparties.

b. can act as a swap broker and match counterparties

c. can act as a swap dealer and stand ready to accept either side of a currency swap.

d. all of the above

5) Market completeness of interest rate swaps means:

a. all types of debt instruments are regularly available for all borrowers

b. the interest rate swap market assists in tailoring financing to the type desired by a particular borrower.

c. one counterparty will benefit at the expense of another

d. the swap dealer will not benefit