Which of the Following Regarding the Role of a Financial

Multiple Choice

Which of the following regarding the role of a financial intermediary in an interest rate swap is incorrect?

A) Most swaps involve a financial intermediary as counterparty.
B) The financial intermediary will most often seek to engage in an offsetting swap.
C) The intermediary makes its profit by maintaining a spread between the rates offered to the two counterparties.
D) The financial intermediary, by establishing a matched swap, ends up with a positive net exposure in the swap market.