Question #1_______in a swap refers to the risk arising from the difference in the interest rate defined in the terms of a swap and the interest rates of the assets and liabilities held by the parties to swap.,A.Interest rate risk B. Default risk C.Basis risk D. Transaction risk E. Liquidity risk,Question #2: While the largest U.S. depositories are required to settle their legal reserve requirements with the Federal Reserve over successive bi-weekly periods, the more numerous but smaller banks are required to do so: A.once every day.B. once every week.,C. once every month,D. once every quarter,E. once every year.
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