Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) Vanilla or generic swaps have evolved as a result of the asset / liability needs of borrowers and lenders.
B) A nonamortizing swap is one in which the notional principal amount decreases in a predetermined way over the life of the swap.
C) An amortizing swap is one in which the notional principal amount increases at a predetermined way over time.
D) In a generic or plain vanilla swap, the notional principal amount does not vary over the life of the swap.