Question
52. Consider the following five statements: i. Swaps may be used to achieve a lower cost of funds for a company. ii. In an interest
52. Consider the following five statements: i. Swaps may be used to achieve a lower cost of funds for a company. ii. In an interest rate swap, the two parties swap the principal amount plus the ongoing associated interest obligations. iii. An intermediated swap is said to be matched' when a bank enters into swaps with both firms involved in an interest rate swap iv. A plain vanilla' swap is the fixed AUD to floating AUD swap. v. If an intermediary is involved in a swap between two parties, the intermediary will also provide the initial loan to both parties. Which of the following are correct? A. i, ii, iii and iv are true B. ii, iii, iv and v are true C. ii, and iv are true D. i and iii are true
why choose d can help explain why other three are incorrect?????
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