After Being Introduced in the 1980s, Currency Swaps Have Remained

question 49

True/False

After being introduced in the 1980s, currency swaps have remained a relatively insignificant financial derivative instrument.

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Definitions:

Interest Payable

A liability account shown on a company’s balance sheet which represents the amount of interest expense that has accrued but has not been paid as of the balance sheet date.

Interest Expense

The financial cost of borrowing money that an entity sustains over time.

Notes Payable

Written promises to pay a specified amount of money, usually including interest, at a future date; classified as liabilities.

Cash

Money in the form of coins or banknotes, especially that which is used to conduct transactions.