Currency Swaps Are Used to Hedge Against Exchange Rate Risk

question 48

True/False

Currency swaps are used to hedge against exchange rate risk from mismatched currencies on assets and liabilities.

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Definitions:

Bromobenzene

An organobromide compound with a formula C6H5Br, used as a precursor in organic synthesis for the introduction of phenyl groups.

Reagents

Chemical substances used in reactions to bring about and probe chemical changes, often to transform reactants into products.

2,2-dimethyloxirane

A type of oxirane with two methyl groups attached to the same carbon atom, used in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent, antiseptic, and intoxicant.