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Consider a plain vanilla swap where Fowling Company is making fixed Interest rate payments to Schlitt Company in exchange for variable interest rate payments from

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Consider a plain vanilla swap where Fowling Company is making fixed Interest rate payments to Schlitt Company in exchange for variable interest rate payments from Schlitt Company equal to LIBOR plus 5 percent. If there is an announcement stating the Federal Reserve plans to increase the reserve requirement, which financial market participant would benefit most from the change in monetary policy? Schlitt Company Fowling Company

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