A Foreign Exchange Swap

question 70

Multiple Choice

A foreign exchange swap

• A) is a spot sale of a currency.
• B) is a forward repurchase of the currency.
• C) is a spot sale of a currency combined with a forward repurchase of the currency.
• D) is a spot sale of a currency combined with a forward sale of the currency.
• E) make up a negligible proportion of all foreign exchange trading.

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Definitions:

Interaction

The way in which two or more entities act upon each other or communicate, often considered a fundamental concept in social sciences.

Expectancy Theory

A motivation theory suggesting that individuals are motivated to engage in behaviors based on the expected outcomes and the value they place on those outcomes.

Protestant Ethic

A concept which suggests that hard work, discipline, and frugality are a result of a person's subscription to the values espoused by the Protestant faith, commonly linked to capitalism's development.

Hard Work

The considerable effort and diligence applied to tasks or objectives, often seen as a virtue leading to success and achievement.