A key use of interest-rate swaps is to: Answer a. Earn the fees for constructing the swaps b. Provide a hedge against interest-rate risk c. Manage government revenues. d. Eliminate risk for both parties involved in the transaction

A key use of interest-rate swaps is to: Answer a. Earn the fees for constructing the swaps b. Provide a hedge against interest-rate risk c. Manage government revenues. d. Eliminate risk for both parties involved in the transaction

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter15: Monetary Policy

Section15.1: Tansmission Mechanism

Problem 1ST

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Question

A key use of interest-rate swaps is to:

Answer

a. Earn the fees for constructing the swaps

b. Provide a hedge against interest-rate risk

c. Manage government revenues.

d. Eliminate risk for both parties involved in the transaction

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