Which One of the Following Options Is Not a Type

question 31

Multiple Choice

Which one of the following options is not a type of swap?

• A) the sale of foreign currency short-term forward against the purchase of foreign currency forward
• B) the purchase of foreign currency short-term forward against the sale of foreign currency long-term forward
• C) the purchase of foreign currency spot against the sale of foreign currency forward
• D) the sale of foreign currency short-term forward against the purchase of foreign currency long-term forward

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Definitions:

Commercial Letter

A document used in international trade, containing information about a transaction or agreement between businesses.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Exchange-Traded Funds

Investment funds that are tradeable on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Contagion

A pattern in which stock markets have become increasingly interconnected around the world and markets in different countries have begun reacting similarly.