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:

Segmented Information

Financial information that is broken down into segments, such as geographic regions, product lines, or business units, within a company's financial statements.

Operating Units

Divisions or branches within a larger enterprise, each handling operations semi-independently but under the governance of the enterprise.

Chief Operating Decision-maker

An individual or group within an organization responsible for making strategic decisions affecting the company's financial performance and operations.

Profit/Loss

The financial result of an entity's operating and non-operating activities over a specific period, indicating net earnings or losses.