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The primary concern of Banc one analysts was that SWAPs were used to speculate and the...

The primary concern of Banc one analysts was that SWAPs were used to speculate and the lack of disclosure about the impact on bank earnings.

Select one:

True

False

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Answer #1

SWAP refers to an exchange of one financial instrument for another between the parties concerned. This exchange takes place at a predetermined time, as specified in the contract.

The statement is true. That SWAPs were used to speculate and the lack of disclosure about the impact on bank earnings.

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