When Two Borrowers Engage in a Currency Swap,they Agree To

question 59

Multiple Choice

When two borrowers engage in a currency swap,they agree to:

• A) trade one currency for another, thus avoiding the foreign exchange market.
• B) make payments on each other's borrowings in a different currency.
• C) pay to each other any depreciation or appreciation of the currency.
• D) exchange fixed-rate interest payments for variable-rate interest payments.