The simultaneous purchase and sale of a given amount of foreign exchange for two different value dates is called a:
A)spot exchange.
B)currency swap.
C)forward exchange.
D)reverse exchange.

Question

Quizplus · Accepted Answer

This is because the given scenario describes a currency swap, where two parties exchange currencies for a specific period of time and then reverse the transaction at a later date. A spot exchange involves buying or selling foreign currency for immediate delivery, a forward exchange involves a contract to buy or sell foreign currency at a pre-determined rate for a future delivery date, and a reverse exchange is not a commonly used financial term.

The Simultaneous Purchase and Sale of a Given Amount of Foreign