Currency Swaps Are Used To

question 56

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:

Balance Sheet Approach

A method used in international human resources that is focused on equalizing the cost differences for employees on international assignments to ensure their purchasing power is maintained across different countries.

Repatriation Plan

A strategy designed to assist employees in transitioning back to their home country after completing an international assignment.

Career Positions

Employment roles that offer a path of progression, often requiring specific skills and offering long-term employment.

Canadian Companies

Businesses that are registered, based, or originated in Canada, operating under Canadian laws and regulations.