A Foreign Exchange Swap

question 70

Multiple Choice

A foreign exchange swap

• A) is a spot sale of a currency.
• B) is a forward repurchase of the currency.
• C) is a spot sale of a currency combined with a forward repurchase of the currency.
• D) is a spot sale of a currency combined with a forward sale of the currency.
• E) make up a negligible proportion of all foreign exchange trading.

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Definitions:

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Income

Earnings acquired regularly through employment or investment returns.