When Two Borrowers Engage in a Currency Swap, They Agree

question 95

Multiple Choice

When two borrowers engage in a currency swap, they agree to:

• A)Trade one currency for another, thus avoiding the foreign exchange market
• B)Make payments on each other's borrowings in a different currency
• C)Pay to each other any depreciation or appreciation of the currency
• D)Exchange fixed-rate interest payments for variable-rate interest payments

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