A Plain Vanilla Forex Swap Does NOT Involve Which of the Following

question 7

Multiple Choice

A plain vanilla forex swap does NOT involve which of the following?

• A) exchange of principal at the beginning
• B) exchange back of principal along with interest payments
• C) cash flows in different currencies
• D) cash flows at intermediate dates
• E) more than two counterparties

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Definitions:

Bonding

The process of establishing a secure or insured relationship, often through a financial guarantee or a bond, to protect against losses or damages.

Wrongful Act

An action that is illegal or immoral, which can lead to civil liability or criminal charges for the person who commits it.

Subrogation

The legal process by which one party, such as an insurer, assumes another's legal right to collect a debt or damages after having paid for the loss.

Insurance Law

The body of law governing the business of insurance, including the regulation of policies, claims, and the contractual obligations of parties.