Stock Market Swaps Multiple Choice Questions with Answers – PDF Download

MCQ 1: The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called:

1. float-fixed swaps
2. interest rate swaps
3. indexed swaps
4. counter party swaps

MCQ 2: A swap that is used to evade the risk of exchange rate exists because of currency mismatching is classified as:

1. floating swaps
2. fixed swaps
3. currency swaps
4. notion swaps

MCQ 3: In interest rate swap transaction, the party who pays the floating payments of interest is considered as:

1. notion buyer
2. notion seller
3. swap buyer
4. swap seller

MCQ 4: The amount of money involved in swap transaction is classified as:

1. notion principal
2. swap principal
3. transaction principal
4. time value of swap

MCQ 5: The agreement between two parties to exchange cash flows in future and the cash flows are based on underlying instruments is classified as:

1. swaps
2. interchange
3. exchange
4. index