Currency Swap Is Most Similar in Economic Purpose to a

question 18

Multiple Choice

currency swap is most similar in economic purpose to a

• A)basis swap
• B) parent company loan
• C) debt-equity swap
• D) parallel loan

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Definitions:

WACC

Weighted Average Cost of Capital, representing the average rate of return a company is expected to pay its security holders.

Return on Investment

Return on Investment (ROI) measures the gain or loss generated by an investment relative to the amount of money invested.

Minimised

Reduced to the smallest possible size, amount, degree, or level.

Larger Scheme

A broader or more comprehensive plan or ambition that smaller actions or ideas contribute towards.