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IIA-CFSA · Question #376

When one party trades a variable interest rate for a fixed interest rate or vice versa then __________ occurs.

The correct answer is B. Interest rate swap. See the full explanation below for the reasoning.

Question

When one party trades a variable interest rate for a fixed interest rate or vice versa then __________ occurs.

Options

  • AFuture contracts
  • BInterest rate swap
  • COption
  • DForward contracts

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    72% (18)
  • C
    16% (4)
  • D
    8% (2)

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