1. The swap rate in plain vanilla swap:
   1. Is the exact average of the forward rates
   2. Is a multi-period fixed rate
   3. Is always the current interest rate
   4. Is the rate paid by the floating-rate payer

2. In relation to the bond market, wide credit spreads:
   1. Tend to narrow during times of crisis, like GFC
   2. Increase the profitability of trading for bond dealers
   3. Show that investors are concerned about risk posed by bonds
   4. Is an indicator of a very liquid market.

3. Dealers in the bond market:
   1. Trade in both wholesale and retail amounts
   2. Earn a commission when the trade is. Completed
   3. Will make margin payments to the clearinghouse
   4. When quoting will bid high and offer low

4. If the AUD/USD exchange rate decreased from 0.7861 to 0.7858 this indicates:
   1. A depreciation in the AUD
   2. An appreciation in the AUD
   3. A depreciation in the USD
   4. None of the above