Question

Which of the following terms is used in Banking Field?

• A. Interest Rate Swap
• B. Input Devices
• C. Sedimentary
• D. Zero Hour
• E. Privilege Motion

Answer 1

The correct option is A

Interest Rate Swap

Interest Rate Swap is the correct answer.
Interest Rate Swap is defined as a ‘arrangement between two parties’ (banks/businesses) to swap interest payments. The principal amount will not be traded or exchanged in this approach; just the interest rate will be swapped or exchanged. It converts a variable rate loan’s interest into a fixed cost. It’s also known as a basic vanilla switch.