The Primary Reasons for a Counterparty to Use a Currency

question 72

Multiple Choice

The primary reasons for a counterparty to use a currency swap are

• A)to hedge and to speculate.
• B)to play in the futures and forward markets.
• C)to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market,and the benefit of hedging long-run exchange rate exposure.
• D)to hedge and to speculate,as well as to play in the futures and forward markets.

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Definitions:

Clinical Management

The process of diagnosing, treating, and monitoring patients in a medical setting by healthcare professionals.

Pedigrees

Diagrams used to map out the relationships and traits within families, often used to study genetic disorders and inheritance patterns.

Family Health History

A record of diseases and health conditions present in a person's family, which can indicate an increased risk of similar conditions.

Heredity

The passing of traits from parents to offspring through genes.