What is an FX swap?
A) An exchange of two streams of interest payments in
B) A spot sale (purchase) and a forward purchase (sal
C) An exchange of currencies on a date beyond spot an
D) None of the above

Question

Quizplus · Accepted Answer

An FX swap involves a spot sale or purchase of a currency and a forward purchase or sale of the same currency at a different date. This is different from an exchange of interest payments (A) or an exchange of currencies on a date beyond spot (C). Option D is incorrect as one of the other options is the correct answer.

What Is an FX Swap