Currency Swaps Are Used To

question 99

Multiple Choice

Currency swaps are used to:

• A)Lock in an exchange rate for future delivery of a foreign currency
• B)Effectively transform loans originated in one currency to a different currency
• C)Transform fixed-rate loans into variable-rate loans
• D)Exchange foreign currencies in amounts not possible in the foreign exchange market

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Definitions:

Decision Trees

A graphical representation used for decision-making, showing various outcomes from a series of related choices, helping to weigh options and possible consequences.

Decision Tables

A tool used in both computer programming and business decision-making that represents the logic of decision making through a matrix of conditions and the actions to be taken.

Conditional Value

A numerical value assigned to an outcome in a decision-making process, dependent on specific conditions being met.

Optimistic Decision

A decision-making approach that involves choosing the option with the most favorable possible outcome under uncertain conditions, assuming the best-case scenario.