Foreign Exchange Swaps Are Best Described As

question 48

Multiple Choice

Foreign exchange swaps are best described as:

• A) the right but not the obligation to buy or sell a currency by an agreed future date at an agreed price.
• B) a contract in which one currency is exchanged for another at a price set now and delivered in more than two days' time.
• C) a contract for the simultaneous buying and selling of one currency in exchange for another at various value dates.
• D) buying a currency and then reversing the position by selling a short time afterwards.

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Definitions:

Open Communication

The practice of exchanging information, thoughts, and feelings freely in a transparent, honest, and clear manner within relationships or groups.

Focused Strategy

A business approach that targets a specific market niche or audience with tailored products or services.

Specific Niche

A distinct segment of the market tailored to meet the unique needs or preferences of a targeted group.

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from competitors.