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Question

Consider the following statements
(1) Inflation swap is an over-the-counter and exchange-traded derivative that is used to transfer inflation risk from one counter party to another.
(2) Limited price inflation swaps are inflation swaps which are capped and floored between $$0$$% and $$5$$%.
Which of the statements given above is/are correct?

A
Only 1
B
Only 2
C
Neither 1 nor 2
D
Both 1 and 2
Solution
Verified by Toppr

Correct option is C. Both 1 and 2

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Similar Questions
Q1
Consider the following statements
(1) Inflation swap is an over-the-counter and exchange-traded derivative that is used to transfer inflation risk from one counter party to another.
(2) Limited price inflation swaps are inflation swaps which are capped and floored between $$0$$% and $$5$$%.
Which of the statements given above is/are correct?
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Q2
Q. Consider the following statements regarding forex swaps between the RBI and commercial banks introduced recently:Which of the statement(s) given above is/are correct?

  1. 1 and 2 only

  2. 1 and 3 only

  3. 1, 2 and 3

  4. 2 and 3 only
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Q3

27) Consider the following statements:

i) Inflation benefits the debtors.

ii) Inflation benefits the bondholders.

Which of the statements given above is/are correct?


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Q4

Q. Consider the following statements related to Inflation:

Which of the above statements is/are correct?


  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
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Q5
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(1) Inflation can lead to inequality in the distribution of income in an economy.
(2) Inflation can lead to recession in the many sectors of an economy.
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