Question
Which of the following derivative instrument is a type
of financial derivative in which fixed payments of interest are exchanged by two counterparties for floating payments of interest?Solution
A swap is an agreement between two counter parties to exchange cash flows in the future. Under the swap agreement, various terms like the dates when the cash flows are to be paid, the currency in which to be paid and the mode of payment are determined and finalized by the parties. Usually the calculation of cash flows involves the future values of one or more market variables. There are two most popular forms of swap contracts, i.e., interest rate swaps and currency swaps.
Consider the following statements:
1. The Constitution empowers only the Centre to make any discretionary grants for any public purpose, even i...
A man can row a boat at 8 km/h in still water. If the speed of the water current is 2 km/h and it takes him 2 hours to row to a place and come back, how...
Aruna has a younger sister whose age is 8 years less than that of Aruna. If Aruna’s sister’s age is 18 years, then Aruna’s age is:
Which of the following statements is/are not correct in regards to Brahmo Samaj?
1.   The Brahmo Samaj was the first important organization o...
Consider the following statements:
1. Gram sabha is a village assembly comprising all citizens in the area of panchayat.
2. Gram Sabha aim...
Which of the following is an example of a human cell that has the ability to modify its shape?
What is the minimum age requirement to subscribe to the VPBY scheme?Â
L, P, R, V, X, Y and Z are sitting around a circular table facing the centre. Only one person sits between V and L, when counted from the right of V. On...
Which state of India is having the lowest forest cover?
In Excel _____function returns the remainder of two numbers after division.
