Why are swap market transactions costs lower than transaction costs in the long term forward market?
What will be an ideal response?
Answer: The costs are lower because the nature or structure of swaps allows banks and other financial institutions to easily trade in the bond markets in order to hedge their exposures.
You might also like to view...
In which one of the following situations would OD techniques be the most helpful?
A. increasing efficiency among employees in a firm B. helping employees from two similar organizations work better together in a strategic alliance C. dealing with employee stress that comes from revitalizing an organization or adapting to a merger D. facilitating discussion of ethical issues in preparing a company's code of ethics E. working with the CEO to determine how to increase profitability
Of Hofstede’s dimensions, which dimension focuses on the degree to which employees feel they have the right to live their lives as they see fit, choose their own values, and act on their own judgment?
A. individualist–collectivist B. long- or short-term orientation C. uncertainty avoidance D. power distance
When a business has departmental operations, departmental reports are a part of the basic financial statements
Indicate whether the statement is true or false
One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services.
A. intangibility B. perishability C. tangibility D. inseparability E. heterogeneity