A Common Type of Swap Transaction in the Foreign Exchange

question 25

Multiple Choice

A common type of swap transaction in the foreign exchange market is the ________ where the dealer buys the currency in the spot market and sells the same amount back to the same bank in the forward market.

• A) "forward against spot"
• B) "forspot"
• C) "repurchase agreement"
• D) "spot against forward"

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Definitions:

Lateral Compartment

Refers to one of the compartments in the lower leg, containing muscles that are primarily responsible for eversion and plantarflexion of the foot.

Anterior

Refers to the front position or aspect of an organism or one of its parts.

Posterior

Pertaining to the back side of the body or an organ, opposite of anterior.

Coracobrachialis

A muscle in the shoulder that helps in flexing and adducting the arm.