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:

Experiential Avoidance

A mental phenomenon in which people try to steer clear of thoughts, emotions, memories, and bodily sensations that cause them internal discomfort.

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations, used as a therapeutic technique.

Therapeutic Relationship

The professional bond between a therapist and a client, characterized by trust, respect, and mutual understanding, which facilitates the healing process.

ACT

Acceptance and Commitment Therapy, a form of psychotherapy that uses acceptance and mindfulness strategies mixed with commitment and behavior-change strategies.