Which of the following regarding a plain vanilla interest rate swap is most accurate?*

The notional principal is swapped.

The notional principal is returned at the end of the swap.

Only the net interest payments are made.

Which of the following is a common criticism of derivatives?*

Derivatives are too illiquid.

Derivatives are likened to gambling.

Fees for derivatives transactions are relatively high.

In a plain vanilla interest rate swap:*?

one party pays a floating rate and the other pays a fixed rate, both based on the notional amount.

each party pays a fixed rate of interest on a notional amount.

payments equal to the notional principal amount are exchanged at the initiation of the swap

which of the following is a difference between futures and forward contracts? Futures contracts are:*?

standardized.

larger than forward contracts.

over-the-counter instruments.