A Currency Swaps Allows a Multinational Corporation to Change the ________

question 31

Multiple Choice

A currency swaps allows a multinational corporation to change the ________.

• A) currency of denomination of its debts
• B) forward rate on contracts it secures to hedge exchange rate risk
• C) principal and interest rate on its debt
• D) nature of its debt from a fixed interest rate to a floating interest rate

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Definitions:

Stock Investments

Financial investments in the equity of other firms, often in the form of shares of stock, with the intention of earning dividends or selling at a higher price.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its legal worth.

Interest Receivable

An asset account that represents the amount of interest income that has been earned but not yet received in cash.

Interest Receivable

An accounting term for interest income that has been earned but not yet received in cash.