Select the false one/ones from statements given below:
1. Exchanging the loan particular interest rate for another at lowest interest rate is called interest swap.
2. One debt being exchanged by another for a fresh term of repayment scheduled at the same or lower interest rate called debt swap.
Answer: C
In the ‘debt swap’ the interest rates may remain the same as the older loan since the intention here is to get term of loan payment increased not decreased. Statement 2 is also correct.