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3I0-012 · Question #174

An interest rate swap (IRS) is:

The correct answer is A. A contract to exchange one stream of interest payments for another. See the full explanation below for the reasoning.

Question

An interest rate swap (IRS) is:

Options

  • AA contract to exchange one stream of interest payments for another
  • BA temporary exchange of one deposit for another of a longer maturity in the same currency
  • CA forward-forward contract
  • DA contract to exchange an interest rate stream in one currency for another one in a different currency

How the community answered

(38 responses)
  • A
    82% (31)
  • B
    3% (1)
  • C
    11% (4)
  • D
    5% (2)

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