4 Finance discuss questions ( short answer questions) need help

Business Finance

Explain the types of cash flow characteristics that would cause a firm to hedge interest rate risk by swapping floating-rate payments for fixed payments. Why would some firms avoid the use of interest rate swaps even when they are highly exposed to interest rate risk?

Explain the difference between a freely floating system and a dirty float. Which type is more representative of the U.S. system?

Explain the use of the federal funds market in facilitating bank operations.

Do all commercial borrowers receive the same interest rate on loans