Under Which Conditions Would One Be MOST LIKELY to See

Multiple Choice

Under which conditions would one be MOST LIKELY to see an interest rate swap?

A) A borrower wants a fixed rate loan,but the bank only offers floating rate loans; the borrower "swaps" loans with someone who has a fixed rate loan
B) A borrower does not have enough equity for a conforming loan,so he or she takes out a "second" mortgage loan
C) A borrower does not have enough equity for a conforming loan,so he or she "swaps" mortgage insurance for increased equity investment
D) A bankruptcy court orders a lender to "swap" a debtor's high interest rate for a lower interest rate