Which of the Following Is an Example of a Bilateral

question 70

Multiple Choice

Which of the following is an example of a bilateral treaty?

• A)The United States enters into an agreement with Canada and most of Western Europe.
• B)The United States enters into a security agreement with other states in the Western Hemisphere.
• C)The United States enters into a security agreement with Israel.
• D)The United States enters into a security agreement with the Philippines,Pakistan,and Thailand
• E)Australia and New Zealand enter into a security agreement with the United States.

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Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another, usually used in international trade and finance.

Counterparty

Second borrower in currency swap. Counterparty borrows funds in currency desired by principal.

Currency Swap

A Currency Swap is a financial derivative that involves the exchange of principal and interest payments in one currency for those in another, commonly used by companies to manage foreign exchange risk.

Exchange Rate Risk

The potential for loss due to fluctuations in the foreign exchange rates affecting investments or transactions.