Q. In Financial Language, Fixed to Floating and Floating to Floating are used in context with which among the following?
Answer: Swaps
Notes: The terms "Fixed to Floating" and "Floating to Floating" refer to types of interest rate swaps. In a Fixed to Floating swap, one party pays a fixed interest rate while receiving a floating rate, typically linked to a benchmark like LIBOR. In a Floating to Floating swap, both parties exchange floating rates, often based on different benchmarks. Interest rate swaps are commonly used for hedging against interest rate risk and managing cash flow. The global market for interest rate swaps is substantial, with trillions of dollars in notional amounts traded annually.