After Being Introduced in the 1980s, Currency Swaps Have Remained

question 49

True/False

After being introduced in the 1980s, currency swaps have remained a relatively insignificant financial derivative instrument.

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Definitions:

Trading Volume

It denotes the total number of shares or contracts traded for a specific security or market during a given period.

Bubble

A situation where observed prices soar far higher than fundamentals and rational analysis would suggest.

Crash

A situation where market prices collapse significantly and suddenly.

Money Illusion

The tendency of people to think of currency in nominal, rather than real, terms, thereby neglecting the effect of inflation on purchasing power.