A Foreign Exchange Swap

question 70

Multiple Choice

A foreign exchange swap

• A) is a spot sale of a currency.
• B) is a forward repurchase of the currency.
• C) is a spot sale of a currency combined with a forward repurchase of the currency.
• D) is a spot sale of a currency combined with a forward sale of the currency.
• E) make up a negligible proportion of all foreign exchange trading.

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Definitions:

Cost of Goods Sold

The direct financial outlays for making the goods a company offers for sale, including the cost of materials and labor.

Supplies Account

An account used to track the costs of supplies that have not been consumed by the end of an accounting period.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and payroll.

Operating Income

The profitability from a company's core business operations, excluding deductions of interest and taxes.