What is the term for a contract where two parties agree to exchange future cash flows that are determined by underlying assets?

World Stock Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
World Stock Marketsfinance-mcqs › world-stock-markets
Published
13 May 2023
Last updated
28 May 2026

Browse all World Stock Markets MCQs

Choose the correct answer

Explanation

A swap is a financial agreement between two parties to exchange cash flows in the future, with the amounts based on specified underlying instruments. Other options like interchange, exchange, and index do not describe this type of contract.

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.