Floating for Floating Currency Swaps

question 6

Multiple Choice

Floating for floating currency swaps

• A)the reference rates are different for the different currencies: e.g. dollar LIBOR versus euro LIBOR.
• B)do not exist.
• C)offer the swap bank a built-in hedge.
• D)none of the above

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Definitions:

Prosocial Behavior

Voluntary actions intended to benefit others, such as helping, sharing, donating, co-operating, and volunteering.

Instrumental Assistance

Aid that involves providing tangible support or services, such as financial help or physical labor, to someone in need.

Harsh Punishment

Severe or strict disciplinary measures, which may have negative psychological effects on the recipient.

Authoritarian

A leadership or governmental style characterized by strong central power and limited political freedoms.