If a 12-Month AUD/NZD Swap Is Quoted 53/47, Which of the Following

question 559

Multiple Choice

If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?

• A) 12-month AUD rates are higher than 12-month NZD rates
• B) 12-month AUD rates are lower than 12-month NZD rates
• C) Spot AUD/NZD will be higher by approximately 50 points in 12 months
• D) The AUD yield curve is positive, whilst the NZD curve is negative

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Definitions:

Ag(NH3)2+

The diamminesilver(I) ion, a complex ion used in the Tollens' test for aldehyde detection, indicating the presence of an aldehyde group when it reduces to metallic silver.

H2CrO4

Chromic acid, a potent oxidizing agent utilized in organic chemistry for the oxidation of alcohols.

Br2/CCl4

A reagent combination used in organic chemistry for adding bromine across double bonds in a non-polar solvent, carbon tetrachloride.

Molecular Structure

The arrangement of atoms within a molecule, defining its chemical and physical characteristics.