Which of the Following Statements Is True Concerning Dealing and Rollovers

question 576

Multiple Choice

Which of the following statements is true concerning dealing and rollovers at non-current rates?

• A) When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread
• B) Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party's senior management
• C) Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction
• D) Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

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Definitions:

Error And Fraud

Incorrect or intentional misstatements in financial statements, typically due to oversights or deliberate deception.