Currency Swaps Are Often Used to Provide Long-Term Financing in Foreign

question 3

Multiple Choice

Currency swaps are often used to provide long-term financing in foreign currencies but NOT because

• A)long-term capital markets are not well developed
• B)long-term forward foreign exchange markets are absent
• C)of high foreign taxes
• D)long-term capital markets are easily accessible

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Definitions:

Chordates

A large phylum of animals that, at some stage in their development, possess a notochord, a hollow dorsal nerve cord, and pharyngeal slits, including vertebrates like fishes, amphibians, reptiles, birds, and mammals.

Amphibian Heart

A three-chambered heart found in amphibians that consists of two atria and one ventricle, partially separating oxygenated and deoxygenated blood.

Oxygen-Rich

Referring to environments or substances with a high concentration of oxygen, such as certain atmospheric layers or oxygenated blood.