A(n) ____ involves an exchange of currencies between two parties, with a promise to reexchange currencies at a specified exchange rate and future date.
A) long-term forward contract
B) currency swap
C) parallel loan
D) interest rate swap

Question

Quizplus · Accepted Answer

A currency swap involves exchanging principal and interest payments in one currency for principal and interest payments in another currency, with a promise to reexchange the currencies at a specified exchange rate and future date.

A(n) ____ Involves an Exchange of Currencies Between Two Parties