A transaction between two parties in which the first party promises to make a payment to the second party. The second party, in turn, promises to make a simultaneous payment to the first party.

(a) swap
(b) available-for-sale securities
(c) spot price
(d) held-to-maturity securities

Ans: (a) swap

Business

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a. colon b. comma c. no additional mark

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Banker's Acceptances are closely affiliated with international transaction rather than domestic ones. Describe and provide an example of how this market works and why there is a need for the instrument

What will be an ideal response?

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