When Two Borrowers Engage in a Currency Swap, They Agree

question 5

Multiple Choice

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

• A) a one-time currency exchange equal to the principal amount borrowed.
• 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.