Floating-For-Floating Currency Swaps

question 98

Multiple Choice

Floating-for-floating currency swaps

• A)have reference rates that are different for the different currencies (e.g.,dollar LIBOR versus euro LIBOR).
• B)have reference rates that can be the same but have different frequencies.
• C)have reference rates that are different for the different currencies (e.g.,dollar LIBOR versus euro LIBOR),and the reference rates can be the same but have different frequencies.
• D)none of the options

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Definitions:

Recording

The process of documenting financial transactions in the accounting records of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded before summarizing them into ledgers.

Journalizing

The process of recording transactions in a journal or diary in chronological order before they are posted to ledgers.

Post Reference Notation

A notation in a ledger to indicate the source of each entry, facilitating the traceability and verification of transactions.