Company a Swaps Fixed-Rate US Dollar Debt with Company B

question 13

Multiple Choice

Company A swaps fixed-rate US dollar debt with Company B for floating-rate Canadian dollar debt.This is a:

• A) single-currency interest rate swap.
• B) currency swap.
• C) cross-currency interest rate swap.
• D) None of these.

---

Definitions:

Differential Carrier

The housing that contains the differential gear set, allowing for different wheel speeds, particularly important for turning.

Crown And Pinion Gearset

A set of gears found in the differential of a vehicle, allowing the drive shaft to transmit power to the axles at an angle.

Matched Unit

This term refers to components or parts engineered to work together seamlessly, often to achieve a particular function or efficiency.

Diagnosed Defective

Identified as not functioning correctly or failing to meet performance standards through diagnostic testing.