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

---

Definitions:

Investment Turnover

A ratio that measures the efficiency of a company in generating sales or revenue from its invested assets.

Profit Margin

The ratio of net profits to revenues for a company, indicating the efficiency at which it can convert revenue into profit.

Return on Investment

A financial ratio that calculates the gain or loss generated on an investment relative to the amount of money invested.

Investment Turnover

A financial ratio that measures the efficiency of a company's use of its investments in generating sales revenue.