A Floating for Floating Currency Swap Is Equivalent to

question 17

Multiple Choice

A floating for floating currency swap is equivalent to

• A) Two interest rate swaps, one in each currency
• B) A fixed-for-fixed currency swap and one interest rate swap
• C) A fixed-for-fixed currency swap and two interest rate swaps, one in each currency
• D) None of the above

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Definitions:

Curve

In mathematics and various disciplines, a continuous and smooth line with no sharp angles, representing a path or graph of a function.

Temporary

Describes something intended to last for only a limited period of time, not permanent.

Spotting Trends

The practice of identifying patterns or shifts in markets, consumer behaviors, or other areas over a period of time.

Repetitive Processes

Operations or activities that are performed in the same manner, allowing for efficiency and standardization, often found in manufacturing or production environments.