Which of the Following Is the Best Definition of Counterparty

question 229

Multiple Choice

Which of the following is the best definition of counterparty.

• A) Money deposited in a financial centre outside of the country whose currency is involved.
• B) International bonds issued in multiple countries but denominated in a single currency (usually the issuer's currency).
• C) Banks that make loans and accept deposits in foreign currencies.
• D) The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).
• E) Second borrower in currency swap. Counterparty borrows funds in currency desired by principal.

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Definitions:

Economic, Legal

Pertaining to the principles and regulations that govern trade, business activities, and wealth distribution within and between societies.

Legal Expectations

Standards or obligations set by laws and regulations with which individuals or organizations are required to comply.

Ethics Of Decision

The component of decision making concerned with the moral principles and values that govern the decision maker's behavior.

Competitor Loses

Situations where a business's rivals face setbacks or declines, potentially offering advantages to others in the market.