What Is an FX Swap

question 357

Multiple Choice

What is an FX swap?

• A) An exchange ot two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity
• B) A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties
• C) An exchange of currencies on a date beyond spot and at a price fixed today
• D) None of the above

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Definitions:

Constant Voltage Transformer

A type of transformer that provides consistent voltage output to its load, regardless of changes in input voltage or load conditions.

Line Voltage

The voltage present in the electrical power distribution system, typically referring to the mains electricity supply voltage.

Grounding Connection

An electrical connection made to the earth or another large conducting body to establish a reference potential for circuitry.

Metal Enclosure

A protective casing made of metal used to house and protect electrical or mechanical equipment from environmental conditions, interference, or damage.