Which of the Following Is an Appropriate Definition of a Currency

question 2

Multiple Choice

Which of the following is an appropriate definition of a currency swap?

• A)A swap used to hedge against exchange rate risk from mismatched currencies on assets and liabilities.
• B)A swap used to hedge against the general depreciation of a currency.
• C)A swap used to hedge against the general appreciation of a currency.
• D)A swap used to speculate on the depreciation or appreciation of a currency.

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Definitions:

Bystander Effect

A concept in social psychology where the presence of others decreases a person's likelihood to offer assistance to a person in need.

Frustration-Aggression Principle

A psychological theory suggesting that frustration often leads to aggressive behavior.

Just-World Phenomenon

The cognitive bias that a person's actions are inherently inclined to bring morally fair and fitting consequences to that person, essentially believing in a just world.

Ocean Shoreline

The boundary line where the ocean meets the land.