In Which of the Following Transactions Is a Currency Switched

question 56

Multiple Choice

In which of the following transactions is a currency switched with another on one date and then switched back on a future date?

• A)reverse transaction
• B)spot transaction
• C)FX swap
• D)outright forward transaction

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Definitions:

Uniform Distribution

An equal likelihood for all outcomes characterizes this probability distribution.

Waiting Time

The duration of time that passes from a specified point until a particular event occurs, often analyzed in queueing theory to improve service processes.

Standardize

The process of adjusting values measured on different scales to a notionally common scale, often used in statistical analysis to compare data points.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data; most scores are near the mean, with fewer scores at the extremes.