24-66 When a Bank Enters into a Fixed-Floating Currency Swap,it

question 82

Multiple Choice

24-66 When a bank enters into a fixed-floating currency swap,it is exposed to

• A)both interest rate and currency exposures.
• B)only interest rate exposures.
• C)only exchange rate exposure.
• D)zero interest rate exposure over the life of the swap.
• E)zero interest rate and currency exposure over the life of the swap.

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Definitions:

Bedding

Layers or beds of varying thickness and character, generally in a sediment or sedimentary rock.

Sediment Supply

The availability of sediment transported by natural processes, such as rivers, glaciers, wind, and waves, to a particular area.

Sea Level

The average height of the ocean's surface between high and low tide, used as a standard in reckoning land elevation or sea depths.

Sedimentary Layers

Strata of rock formed from sediment deposition, often distinguishable by differences in color, composition, or texture.