DescriptionPART ONE: Please explain the role of the Intermediary in an Interest Rate Swap transaction? What function does the intermediary perform? As intermediaries perform their service for a fee, do you think that there may be a cheaper way for a financial institution to achieve their goal of reducing interest rate risk?
PART TWO:
The book discusses central bank intervention in the foreign exchange market to influence the value of a particular currency. How big is the market for foreign currency? Do you think that central bank intervention is a good idea? Why or why not? Madura, Jeff. Financial Markets & Institutions. 11th ed. Cengage Learning, 2015. ISBN-978-1-133-94787-5
