Answer / pallavi

A swap is a flexible, private, forward-based contract or
agreement, generally between two counter parties to exchange
streams of cash flows based on an agreed-on (or notional)
principal amount over a specified period of time in the future.

Answer / leela

If firms in separate countries have comparative advantages
on interest rates, then a swap could benefit both firms.
For example, one firm may have a lower fixed interest rate,
while another has access to a lower floating interest rate.
These firms could swap to take advantage of the lower
rates.

Answer / j.jeetesh

Exchange goods & service , trade

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