A Floating for Floating Currency Swap Is Equivalent to

question 17

Multiple Choice

A floating for floating currency swap is equivalent to

• A) Two interest rate swaps, one in each currency
• B) A fixed-for-fixed currency swap and one interest rate swap
• C) A fixed-for-fixed currency swap and two interest rate swaps, one in each currency
• D) None of the above

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Definitions:

United States Treasury

The government department responsible for managing federal finances, including issuance of currency and management of government accounts.

Store Of Value

An asset that can be saved, retrieved, and exchanged at a later time, maintaining its value over time.

Checkable Deposits

are bank accounts that allow the account holder to write checks to third parties. Checkable deposits include checking accounts and are considered very liquid.

Reserves

Funds or physical resources set aside, often by businesses or governments, to meet future expenses, emergencies, or for specific purposes.