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:

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks—sudden periods of intense fear or discomfort that may include palpitations, sweating, and feelings of impending doom.

Obsessive-Compulsive Disorder

Obsessive-Compulsive Disorder (OCD) is a mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).

Seasonal Affective Disorder

A type of depression that occurs at a specific time of the year, usually during winter, when there is less natural sunlight.

Cyclical Depressive Pattern

A form of depression marked by phases of significant depressive symptoms that come and go in a recurring, predictable pattern.