1. A swap is a method used to reduce financial risk. Which of the following statements about swaps, if any, is NOT CORRECT?

a.	The earliest swaps were currency swaps, in which companies traded debt denominated in different currencies, say dollars and pounds.
b.	Swaps are very often arranged by a financial intermediary, who may or may not take the position of one of the counterparties.
c.	A problem with swaps is that no standardized contracts exist, which has prevented the development of a secondary market.
d.	A company can swap fixed interest payments for floating interest payments.
e.	A swap involves the exchange of cash payment obligations.

2. Which of the following statements is most CORRECT?

a.	Futures contracts generally trade on an organized exchange and are marked to market daily.
b.	Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
c.	There are futures contracts for currencies but no forward contracts for currencies.
d.	Futures contracts don't have any margin requirements but forward contracts do.
e.	One advantage of forward contracts is that they are default free.

3. Chapter 7 of the Bankruptcy Act is designed to do which of the following?

a.	Establish the rules of reorganization for firms with projected cash flows that eventually will be sufficient to meet debt payments.
b.	Ensure that the firm is viable after emerging from bankruptcy.
c.	Allow the firm to negotiate with each creditor individually.
d.	Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and allow insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt.
e.	Protect shareholders against creditors.