Which method of trading currencies involves the conversion of one currency into another at one point in time with an agreement to reconvert it back to the original currency at some point in the future?
A) forward transaction
B) futures transaction
C) spot transaction
D) swap transaction

Question

Quizplus · Accepted Answer

Swap transactions involve the exchange of currencies between two parties at one point in time with an agreement to reverse the transaction in the future, effectively allowing the parties to swap currencies for a set period.

Which Method of Trading Currencies Involves the Conversion of One