What is swap?

Answer Posted / samson pailo

A swap is a derivative in which two counterparties agree to
exchange one stream of cash flows against another stream.
The swap agreement defines the dates when the cash flows are
to be paid and the way they are calculated. Swaps can be
used to hedge certain risks such as interest rate risk, or
to speculate on changes in the expected direction of
underlying prices.

Is This Answer Correct ?    13 Yes 6 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Will Donald Trump's Presidential Election affect the Indian economy?

688


What are the different fields where information technology in the banks?

663


In the industrial field, what are the different banking software applications present?

560


Discuss risks that you have taken if your life?

616


What are current liabilities and provisions?

630






What is non-scheduled bank?

630


What do you know about retail lending?

676


What are the disadvantages of debentures?

593


You are aware of ATMs, Right. Can you quote some disadvantages of ATM?

612


Do You Expect Capital Demand In The System To Increase On Average Due To The Stress Test Exercise?

630


What are the leadership qualities you have?

653


Why do companies find public deposits attractive?

576


Explain opportunity cost and differential cost.

617


oracle interview questions and answers?

2108


What is the old name of syndicate bank?

654