The Following Are Benefits of a Currency Swap Except

question 8

Multiple Choice

The following are benefits of a currency swap except:

• A) Swaps avoid dealing with any interest payments.
• B) Swaps lower transaction costs of cross-currency cash management.
• C) Swaps reduce foreign exchange risk for financing transactions.
• D) Swaps allow firms to acquire financing for which it has a comparative advantage.

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Definitions:

Optional

A choice or possibility among multiple alternatives that is not mandatory.

Cost-Saving

Cost-saving refers to measures or actions taken to reduce expenses and increase efficiency, thereby saving money.

Alternative Dispute Resolution

A range of dispute resolution methods outside of the judicial process, including mediation and arbitration, aimed at resolving conflicts without going to court.

Optional

Something that is not mandatory and can be chosen according to preference.