In a Foreign Currency Swap,a Customer Who Needs to Borrow

question 89

True/False

In a foreign currency swap,a customer who needs to borrow in foreign currency,receives the domestic currency today and swaps it back for the foreign currency just in time to repay the loan in the foreign currency.

---

Definitions:

Stagnant Economy

An economic condition characterized by slow or no growth in production, employment, and other indicators of economic health.

Simultaneous Inflation

A situation where prices of goods and services rise at the same time across different sectors of an economy.

Prices Rising

An increase in the general level of prices of goods and services in an economy over a period of time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.