Glossary

Abstract

T his glossary is intended to provide a general understanding of selected terms used in the book and in connection with banking and finance. Therefore, some definitions are not complete. By way of illustration, a swap is defined in the Glossary as “the simultaneous purchase and sale of currencies or interest rate products in spot and forward market transactions. Swap contracts are traded over-the-counter.” However, in legislation to enact the “Over-the-Counter Derivatives Markets Act of 2009”1 the term swap means any agreement, contract, or transaction that