In interest rate swap transaction, party who pays fixed payments of interest is classified as

A notion buyer
B notion seller
C swap buyer
D swap seller

Correct Answer: swap buyer

In interest rate swap transaction, party who pays fixed payments of interest is classified as swap buyer. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument can be almost anything.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

In interest rate swap transaction, party who pays floating payments of interest is considered as
A notion buyer
B notion seller
C swap buyer
D swap seller
Kalam has invested a part of 10,000 Taka in an account that pays 6% simple interest rate each year and rest of the money in another account that pays 8% simple interest per year. If he has invested the money for 18 months and he has invested the money for 18 months and he earns a total of 1,020 Taka as interest, what is the difference in the amount of the interest earned on both the accounts?
A 40 Taka
B 60 Taka
C 100 Taka
D 120 Taka
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A common stock
B preferred stock
C bonds equity
D common shares
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
A float-fixed swaps
B interest rate swaps
C indexed swaps
D counter party swaps
Bank X pays a simple interest of TaKa 80 on principal o taka 1,000 annually . Bank y pays a simple interest of TaKa 140 on a principal of Taka 1000 annually . What is the ratio of the interest rates of Bank x to Bank y ?
A 4:7
B 6:8
C 9:18
D 2:7
Akash borrows Tk.600 and pays it back in 12 monthly payments of Tk. 61.75. What is his interest rate ?
A 15%
B 20%
C 23.5%
D 30%
Who wrote in 'Hind Swaraj- Our leaders are divided into two parties: the moderates and the extremists. These may be considered as the slow party and the impatient party. Some call the Moderates the timid party and the extremists the bold party.'
A J. Joshi
B Mahatma Gandhi.
C Barendra Ghosh
D Pandit Jawahar Lal Neharu
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A bundling
B un-bundling
C financial engineering
D credit enhancement
E B & C
The difference between a bank's rate of interest on lending to its prime customers and the rate of interest that it pays to others on borrowings (demand, time or savings deposits) is called
A profit rate
B margin rate
C income rate
D interest spread
Bob and Jack share an apartment. If each month Bob pays a dollars and Jack pays b dollars, what percent of the total cost does Bob pay?
A ab%
B ba%
C aa+b%
D 100aa+b%

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