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ACI

3I0-013 · Question #68

Which of the following is trueabout interest rate swaps (IRS)?

The correct answer is D. The notional amount of the swap is generally not exchanged between counterparties. See the full explanation below for the reasoning.

Question

Which of the following is trueabout interest rate swaps (IRS)?

Options

  • AThe fixed rate and the floating rate payers know the cash value of their payments at the outset
  • BThere is exchange of principal at the start and at the end of the swap
  • CPayment netting is only allowed through a third party
  • DThe notional amount of the swap is generally not exchanged between counterparties

How the community answered

(43 responses)
  • A
    2% (1)
  • B
    12% (5)
  • C
    7% (3)
  • D
    79% (34)

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