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Answer Posted / vamshi krishna d
Swaps means exchange. It means a transaction in which two
parties agree to exchange a predetermined series of
payments over a period of time
An arrangement whereby one party exchanges one set of
interest payments for another, e.g., fixed for floating
rate.
A financial swap can be defined as a transaction in which
two parties agreeing to exchange a predetermined series of
payments over a period of time. They are broadly
classified into 2 types they are as interest rate swaps and
currency rate swaps.
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