1. In an interest rate swap, borrowers typically exchange fixed-rate payments in one currency for:
A) Fixed-rate payments in another currency
B) Varaible-rate payments in another currency
C) Fixed-rate payments in the same currency
D) Variable-rate payments in the same currency
2. Which one of the following is a situation where a new project will require a cash investment in net working capital?
A) Inventory levels will be reduced when the project is introduced
B) All sales related to the project will be cash sales to a subsidiary
C) The project will increase inventory more than accounts payable
D) The project will require additional inventory which will be financed by a supplier