Kizspy | Question: 30
(Choose 1 answer)
(18507)Which of the following statements is incorrect?
A. Interest rate swaps are sometimes used by financial institutions and other firms for speculative purposes.
B. A primary reason for the popularity of interest rate swaps is the existence of market imperfections.
C. Swaps are necessary for some financial institutions to obtain the maturities or rate sensitivities on funds that they desire.
D. Most financial institutions that anticipate that interest rate will move in an unfavorable direction do not hedge their positions.
